Central bank cuts interest rates by 25 basis points

The UAE's Central Bank announced that it has decided to reduce repo rates by 25 basis points as of August 1, in line with the Federal Reserve's decision to reduce rates of interest. interest of a quarter of a percentage point.

In a statement, the central bank of the United Arab Emirates also announced a 25 basis point reduction in the benchmark deposit rate as of Thursday.

Deposits issued by the Central Bank to banks operating in the UAE are the monetary policy instrument through which the effects of interest rate changes are transferred to the UAE banking system.

The Fed on Wednesday decided to cut interest rates by a quarter of a percentage point for the first time since October 2008 from 2.25% to 2.25%.

Saudi Arabia and Bahrain have also cut their interest rates, while Kuwait has decided to fix them unchanged, while the central banks of Qatar and Oman have not yet announced their position.

The Saudi Monetary Agency (SAMA) made the decision to reduce the repurchase agreement rate by 300 basis points to 275 basis points.

The Saudi central bank said the repo rate was cut by 250 basis points to 225 basis points.

In the same vein, the CBB lowered the reference interest rate for one-week deposits by 25 basis points from 2.75% to 2.50%.

The central bank of Bahrain said the overnight deposit rate has gone from 2.50% to 2.25% and the one-month deposit rate from 3.10% to 2.85%.

The Central Bank of Kuwait has set the discount rate at 3%.

Stabilization of interests aims at strengthening the favorable climate for non-inflationary economic growth of the non-oil sectors and at maintaining the competitiveness and attractiveness of the national currency as a tool for domestic savings, said the central bank in a statement.