UAE Announces Monetary Policy Rate Cuts on Top of its AED 100 billion Stimulus Package

Following a rate cut by the United States’ Federal Reserve on the 16th of March 2020 to near zero levels, the Central Bank of the United Arab Emirates (UAE) also announced rate cuts, (effective 16th of March 2020) to provide additional support to the COVID-19-hit economy.

Interest rates on one-week Certificate of Deposits (CDs) were reduced by 75 basis points (bps), while maintaining Repo Rates applicable to short-term liquidity borrowings against CDs at 50 bps above the 1-week CD rate.

Rates pertaining to the Interim Margin Lending Facility and the Collateralised Murabaha Facility were cut by 50bps, to 50 bps above the Repo Rate against CDs.

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