- Decision
- Lower
- Rate change
- 25 bps
- base rate
- 3.65%
The Central Bank of the United Arab Emirates cut the Base Rate on its Overnight Deposit Facility by 25 bp to 3.65%, effective 11 December, in line with the US Federal Reserve’s equivalent reduction in the Interest Rate on Reserve Balances to which the UAE’s policy anchor is pegged. After keeping the rate at 4.40% from January through July, the CBUAE has now lowered it by 25 bp each in September, October and December, taking the cumulative decline to 75 bp. The authority kept the rate for short-term liquidity drawn through standing credit facilities at 50 bp above the new Base Rate, maintaining the corridor’s width. The statement cited no new domestic data and provided no additional forward guidance beyond the Fed-driven adjustment.
Rate evolution
Information not available