UAE cuts rates to 4.9% following Fed move

In line with the US Federal Reserve's move, the UAE Central Bank on Wednesday also reduced rates, with the overnight facility now standing at 4.9 per cent.

The UAE and the other Gulf countries follow the US monetary policy cues as their currency is pegged to the greenback, except Kuwait, whose currency is pegged to a basket of global currencies.

The US Federal Reserve on Wednesday lowered interest rates for the first time in more than four years as the US central bank starts to reverse the restrictive conditions it imposed to beat back inflation.

The Federal Open Markets Committee reduced the rates by 50 basis points to 4.75 to 5 per cent, expecting the move to boost consumption.