Decision
Lower
Rate change
25 bps
base rate
4.15%

The Central Bank of the United Arab Emirates (CBUAE) cut the base rate on its Overnight Deposit Facility by 25 bp to 4.15%, effective 18 September, following the US Federal Reserve’s parallel 25 bp reduction in the Interest Rate on Reserve Balances and in line with the dirham’s peg-linked policy framework. After holding the rate at 4.40% since January 2025, this marks the first move in the current year. The CBUAE left the interest rate on short-term liquidity borrowed through all standing credit facilities unchanged at 50 bp above the new base rate, preserving the corridor that sets the floor for overnight money-market rates in the UAE.

Rate evolution

Information not available

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