The Central Bank of the UAE raised the base rate on its Overnight Deposit Facility by 25 basis points, from 5.15% to 5.40%, effective July 27, 2023. The move followed the US Federal Reserve Board’s 25 basis point increase in the interest rate on reserve balances. The central bank maintained the rate for short-term borrowing through all standing credit facilities at 50 basis points above the base rate. Anchored to the Federal Reserve’s reserve balance rate, the base rate signals the UAE’s monetary policy stance and provides a floor for overnight money market rates.
2026-09-16Central Bank of the UAE
Central Bank of the UAE raised base rate by 25 basis points to 5.40%
The Central Bank of the UAE raised its base rate by 25 basis points to 5.40%, effective July 27, 2023, following a corresponding US Federal Reserve increase. It kept the rate on standing credit facilities at 50 basis points above the base rate.