Khaleej Times, Thu, Jun 13, 2024 | Dhu al-Hijjah 7, 1445
UAE Central Bank holds rates following Fed decision
Emirates:
The UAE Central Bank on Wednesday decided to maintain the base rate applicable
to the overnight deposit facility at 5.40 per cent.
The UAE’s decision follows that of the US Federal Reserve, which on Wednesday
decided to leave interest rates unchanged. The UAE follows US monetary policy as
the dirham is pegged to the dollar.
In a statement after the two-day Federal Open Market Committee meeting, the Fed
decided to maintain the target range for the federal funds rate at 5.25 to 5.5
per cent. In its statement, the Fed noted that “there has been modest further
progress” toward its 2 per cent inflation objective.
The annual consumer price index came in at 3.3 per cent in May, down 0.1
percentage point from April, the Labor Department said in a statement earlier on
Wednesday — slightly below expectations.