UAE follows US in raising interest rate

Dubai: The UAE Central Bank has announced it will follow the US in raising interest rates by 25 basis points.

Rates will rise effective Thursday, a statement from the UAE Central Bank said.

The US central bank raised the benchmark borrowing rate on Wednesday but gave the clearest sign to date that it will go slow on additional increases as it watches the economy.

The Federal Reserve’s move seems certain to anger President Donald Trump, who has attacked the central bank repeatedly on Twitter for even considering a fourth hike this year in the key interest rate.

But the Fed delivered on what some economists called a “dovish hike,” raising the target range by 0.25 point, with 2.5 per cent at the high end, while signaling caution moving forward.