UAE matches Federal Reserve’s rate cut

by Richard Kilner

Story link: UAE matches Federal Reserve’s rate cut

Today the UAE Central Bank has matched the Federal Reserve in cutting its repurchase rate by 75 basis points to 2.25%.

The bank has debunked rumours that its monetary policy was subject to US influence.

A spokesman for the central bank stated that the only considerations made were for the Gulf Cooperation Council and trying to give the UAE the best possible economy.

The UAE is currently seeing high interest rates, estimated at 7-9% this year, and the rate cut is expected to cause inflationary pressures to mount.

A majority of industry analysts believe that increasing the money supply is the wrong route to take, and that instead the currency ought to be revaluated.