UAE Central Bank reduces interest rates following US Fed cut

The Central Bank of the UAE on Thursday decided to cut the base rate applicable to the overnight deposit facility (ODF) by 25 basis points from 4.90% to 4.65%, effective from Friday, November 8.

The move follows the Federal Reserve's decision to cut U.S. rates by a quarter percentage point.

The US Federal Reserve shrugged off political uncertainty in Washington and moved ahead with a quarter-point rate cut Thursday, easing monetary policy further as inflation continues to cool.

Policymakers voted unanimously to lower the US central bank's key lending rate to between 4.50 percent and 4.75 percent, the Fed announced in a statement, noting that "labor market conditions have generally eased."