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CBUAE lowers interest rates by 75 bps

CBUAE lowers interest rates by 75 bps
The CBUAE decreased interest rates by 0.75%

UAE – Mubasher: The Central Bank of the UAE (CBUAE) has on Monday decreased interest rates applied to its certificates of deposit (CD) by 75 basis points (bps).

The CBUAE also slashed rates applicable to the Interim Margin Lending Facility (IMFL) and the Collateralised Murabaha Facility (CMF) by 50 basis points but maintained its repo rate unchanged.

This decision comes after the US Federal Reserve decided on Sunday 15 March to cut interest rates to a target range of 0% to 0.25% and adopted a $700 billion quantitative easing programme to shield its economy from the impact of the coronavirus (COVID-19) pandemic.

It is noteworthy to mention that in early March, the CBUAE decided to lower interest rates by 50 bps, following a similar move by the US Federal Reserve.

Similar moves were announced today by central banks in Saudi Arabia and Kuwait, with the latter recording a new record low discount rate.