The UAE Central Bank has reduced its benchmark interest rate by 25 basis points to4.40% following the US Federal Reserve's recent decision to lower its rates. This moveaims to stimulate economic activity as inflationary pressures subside. The base rate cutfor the overnight deposit facility will take effect from Thursday. Additionally, the interestrate for borrowing short-term liquidity remains 50 basis points above the base rate,consistent with the UAE's policy of aligning with the US Fed due to the dirham's peg tothe US dollar.This adjustment comes amidst the UAE's ongoing efforts to diversify its economy awayfrom oil, with the non-oil sector showing accelerated growth. The UAE economy isprojected to expand by 4% in 2024, an upward revision from earlier forecasts, whileinflation has been adjusted down to 2.2%. Other Gulf economies, including SaudiArabia, Qatar, Bahrain, and Kuwait, have similarly adjusted their rates in line with theFed's decision, maintaining alignment with global financial market developments (ICE DUBAI)

Fonte notizia: https://www.thenationalnews.com/business/economy/2024/12/18/uae-central-bank-lowers-interest-rates-f