Wednesday, 25 March 2009

UAE will not cut interest rates now -cbank

All Gulf Arab economies face a possible economic contraction this year but the United Arab Emirates will definitely not cut interest rates immediately, the UAE central bank governor said on Wednesday.

Sultan Nasser al-Suweidi told reporters that the UAE was looking at how to bridge loan-to-deposit ratios. He said that banks' capital adequacy ratios would be raised to 11 percent by June 30.

'A contraction is a possibility in all GCC countries,' he said. 'It is still on the drawing board with the UAE finance ministry to help bridge a gap between loans and deposit ratios.

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