UAE faces possibility of contraction in 2009

The UAE's central bank will keep interest rates low to spur growth, Governor Sultan Nasser al-Suweidi was quoted as saying on Wednesday, as the economy faces the possibility of contraction in 2009.

Suweidi's comments were carried in Arabic language daily Al-Bayan. The UAE's overnight repurchase rate stands at 1%.

"The prospects for UAE's economic growth will be reduced in 2009 from a high single-digit figure to a low growth rate or maybe even negative, due to the current global financial crisis," the newspaper quoted Suweidi as saying.