The United Arab Emirates, which pegs its dirham to the dollar, cut its over-night repurchase rate by 75 basis points to 3.5 percent on Wednesday, matching a US rate cut a day earlier.

The repurchase rate was 4.25 percent on Tuesday, the central bank said. The repo, introduced in November, is the UAE benchmark and sets the rate at which banks borrow funds from the central bank.

The US Federal Reserve slashed its benchmark by three-quarters of a percentage point on Tuesday in an emergency bid to support to a U.S. economy reeling from a mortgages crisis. - Reuters