UAE central bank will not follow US Federal Reserve
The UAE Central Bank said on Tuesday it would not cut interest rates if the US Federal Reserve eases its rate - the second time the country would refrain from mirroring the Fed.Today the Fed announced that it would cut it the rate to between 0 and .25 per cent -- the market had expected a cut to .5 percent. Actually, the Fed has been letting the rate track close to 0 for several weeks.
Until late October, the UAE had been keeping its benchmark overnight repurchase rate at the same level as the Fed funds rate.
Then, in a shock move, the Central Bank decided not to track a 50-basis-point Fed cut on October 29, keeping its overnight repurchase rate at 1.5 per cent.