DUBAI, Dec 17 (Reuters) - The United Arab Emirates central bank said on Thursday it decided to raise the interest rate on its certificates of deposits by 25 basis points, effective immediately, it said in a statement.
The announcement came a day after the U.S. Federal Reserve raised rates for the first time in nine years.
The UAE rate hike follows interest rate rises of a quarter of a percentage point by the central banks of Saudi Arabia, Kuwait and Bahrain. [ID: nL8N1454XV]
Certificats of Deposit are the monetary policy instrument used by the UAE central bank through which changes in interest rates are transmitted.
Reporting by Stanley Carvalho; Writing by Tom Arnold; Editing by Archana Narayanan