UAE Central Bank Lowers Interest Rates

Reduction of the Base Rate on Overnight Deposit Facility

The UAE Central Bank announced on Thursday a 25-basis point reduction in the Overnight Deposit Facility (ODF) base rate –a short-term loan available for one day –lowering it from 4.90% to 4.65%.

Earlier, the U.S. Federal Reserve made a similar decision, cutting interest rates by a quarter percentage point to further ease monetary policy amid a continued decline in inflation. In a unanimous vote, policymakers lowered the key lending rate of the U.S. central bank to a range of 4.50-4.75%. The Fed's statement also noted that "labor market conditions have generally improved."