UAE raises deposit rate, repo rate 25 bps

     The central bank of the United Arab Emirates raised its rates on benchmark certificates of deposits and the repo rate on short-term borrowing by 25 basis points each, in line with the U.S. Federal Reserve's 25 point hike in its fed funds rate earlier in the day.
     The Central Bank of the U.A.E, (CBUAE) whose currency is fixed to the U.S. dollar as other members of the Gulf Cooperation Council (GCC), has shadowed Fed hikes since tightening began in December 2015.
      The CBUAE's deposit rate was raised to 2.50 percent and is now 150 basis point higher than before policy tightening began in December 2015.
      The repo rate on short-term borrowing against CDs was raised to 2.0 percent.

      www.CentralBankNews.info


   

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