The Central Bank of the UAE (CBUAE) maintained the Base Rate applicable to its Overnight Deposit Facility at 3.9%, following the U.S. Federal Reserve’s decision to leave the Interest Rate on Reserve Balances (IORB) unchanged. The interest rate for borrowing short-term liquidity from the CBUAE remains 50 basis points above the Base Rate across all standing credit facilities. Anchored to the Federal Reserve’s IORB, the Base Rate signals the monetary policy stance and provides a floor for overnight money market interest rates in the UAE.
Central Bank of the UAE maintains base rate at 3.9%
The Central Bank of the UAE held its Overnight Deposit Facility Base Rate at 3.9%, following the U.S. Federal Reserve’s decision to keep its Interest Rate on Reserve Balances unchanged. The rate on short-term liquidity borrowing under all standing credit facilities remains 50 basis points above the Base Rate.