Commodity Online
ABUDHABI : Following Saudi Arabia in reducing key interest rates, the UAE also reduced its benchmark overnight repurchase rate by 50 basis points.
In a statement issued here UAE’s central bank said it has slashed the rate to one percent to boost lending to shore up the economy.
Click here to follow weather, trading tips, trends and analysis on Twitter. Get instant updates. It is easy and free to join.
In a statement issued here the central bank said, "with the slowdown of the world economy and the fall in inflationary pressures, a rate cut at this juncture will support domestic economic activity and foster business confidence".
"This 50 basis point cut should further reduce the cost of liquidity supporting facilities implemented by the central bank to support banks," it added.
The central bank last month started a UAE dirham-dollar swap facility and, along with the finance ministry, it has launched 120 billion dirhams ($32.67 billion) of funding facilities to support banks since September.
