UAE discounts any immediate rate cuts: Al Suwaidi

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 Bin Nasser Al Suwaidi 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 per cent 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.