Dubai: The recent 0.50% interest rate cut announced by the US Federal Reserve and swiftly matched by the UAE Central Bank is set to provide significant financial relief to UAE residents. Those with loans, mortgages, and credit card balances will benefit from reduced monthly payments, easing the financial burden many have faced since the US began its rate hikes in March 2022.
The cut exceeded expectations, offering a larger reduction than the anticipated 0.25%. This adjustment is particularly beneficial for residents managing equated monthly installments (EMIs), as it alleviates some of the additional costs incurred during the Fed’s 11 rate hikes over the past year and a half.
Residents and businesses can look forward to lower borrowing costs, providing much-needed respite amidst rising living expenses. The immediate impact of this rate cut is expected to enhance financial stability and consumer confidence in the UAE’s economy.
