The Central Bank of the United Arab Emirates (CBUAE) held the Base Rate on its Overnight Deposit Facility at 3.9%, following the US Federal Reserve’s decision to leave its Interest Rate on Reserve Balances (IORB) unchanged. The hold followed 25-basis-point cuts in October and December 2025 to 3.65% and a 25-basis-point increase in September 2026. The CBUAE also maintained the rate for borrowing short-term liquidity through all standing credit facilities at 50 basis points above the Base Rate. Anchored to the Federal Reserve’s IORB, the Base Rate signals the general monetary policy stance and provides an effective floor for domestic overnight money market interest rates.
Central Bank of the United Arab Emirates Holds Base Rate at 3.9%
The Central Bank of the United Arab Emirates held the Base Rate on its Overnight Deposit Facility at 3.9%, following the United States Federal Reserve’s decision to leave its Interest Rate on Reserve Balances unchanged. It also maintained the short-term liquidity borrowing rate across all standing credit facilities at 50 basis points above the Base Rate.