The UAE Central Bank lowered its key rate on Wednesday.
In a statement, the bank announced a reduction in the base rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points, from 3.90 percent to 3.65 percent.
This decision by the UAE follows the US Federal Reserve’s move to lower its federal funds rate by 25 basis points to a range of 3.5-3.75 percent.
The UAE aligns with US monetary policy due to the dirham being pegged to the US dollar.
