The Central Bank of the UAE has announced that effective today (December14), it will raise interest rates applied to the issuance of its Certificates of Deposits by 25 basis points, a media report said.

The move is in line with the increase in interest rates on US Dollar, following the Federal Reserve Board’s decision to increase the Federal Funds Rate, reported Wam, the Emirates news agency.

The Repo Rate applicable to borrowing short-term liquidity from CBUAE against Certificates of Deposits has also been increased by 25 basis points to 1.75 per cent.

Certificates of Deposit, which CBUAE issues to banks operating in the country, are the monetary policy instrument through which changes in interest rates are transmitted to the UAE banking system.