- Decision
- Lower
- Rate change
- 25 bps
- base rate
- 3.9%
The Central Bank of the United Arab Emirates (CBUAE) lowered the Base Rate on its Overnight Deposit Facility by 25 bp to 3.90 % with effect from 30 October, citing the corresponding 25 bp reduction in the US Federal Reserve’s Interest Rate on Reserve Balances (IORB) to which the Base Rate is anchored. After holding the rate at 4.40 % through July and trimming it to 4.15 % in September, this marks a second consecutive 25 bp cut. The CBUAE kept the rate on short-term liquidity offered via standing credit facilities unchanged at 50 bp above the new Base Rate, maintaining the policy corridor. The statement provided no updated domestic macroeconomic data or forward guidance beyond reaffirming that the Base Rate continues to serve as the effective floor for overnight money-market rates in the UAE and reflects the stance of monetary policy aligned with the US Federal Reserve’s actions.
Rate evolution
Information not available