The UAE economy will grow by over eight per cent this year and inflation, driven mainly by high rents, will fall to four per cent by the middle of this year, the Central Bank Governor said on Sunday.
According to Gulf News, though prices of goods imported from Europe rose in 2004 and rents skyrocketed in 2005, Sultan Bin Nasser Al Suwaidi said inflation is temporary in the country. Al Suwaidi added that the UAE's currency and interest rates would continue to be linked to the US dollar even if inflation continues to climb.
