The central banks of the UAE, Kuwait, Bahrain and Saudi Arabia late on Wednesday cut interest rates following the US Federal Reserve's decision to reduce rates by 25 basis points earlier on Wednesday.
The cut in interest rates will reduce borrowing cost for personal loans, auto loans and home loans etc.
All these GCC countries' currencies are pegged to the US dollar, hence, they follow the Fed's monetary policy for interest rates.
The Central Bank of the UAE (CBUAE) will lower interest rates applied to the issuance of its Certificates of Deposits from Thursday, October 31, 2019, in line with the decrease in interest rates on US dollar, following the Federal Reserve Board's decision to decrease the Federal Funds Rate by 25 basis points at its meeting.
The Repo Rate applicable to borrowing short- term liquidity from CBUAE against Certificates of Deposits has also been decreased by 25 basis...