The UAE faces the prospect of stoking inflationary pressure if the US Federal Reserve chooses to cut interest rates to boost its ailing housing market, reported Emirates Today. With the dirham's dollar peg, the country's central bank is likely to follow the Fed's lead and do likewise at a time when interest rates in the UAE should actually be raised to promote saving and cool inflation levels of around 10%. [AMEInfo.com]



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Posted: 09|17|07 at 6:21 am. Filed under: News.