The Central Bank of the United Arab Emirates (CBUAE) kept the Base Rate on the Overnight Deposit Facility unchanged at 3.65 percent on 29 April 2026, aligning with the U.S. Federal Reserve’s decision to leave the Interest Rate on Reserve Balances steady and signalling an unchanged domestic policy stance. After lowering the Base Rate by a cumulative 75 basis points between September and December 2025, the central bank has held it steady since January 2026. It also maintained the interest rate on short-term liquidity borrowing at 50 basis points above the Base Rate, preserving the corridor that anchors overnight money-market rates, with the Fed-linked Base Rate continuing to serve as the effective floor for UAE interbank funding costs. The statement contained no forward-guidance beyond the policy hold.
Central Bank of the UAE 2026-04-29
Central Bank of the United Arab Emirates holds Base Rate on the Overnight Deposit Facility at 3.65 percent
Central Bank of the United Arab Emirates held the Overnight Deposit Facility base rate at 3.65 % on 29 April 2026, in line with the U.S. Federal Reserve’s pause and continuing the post-January stability following 75 bp of cuts in late 2025. It also left the short-term liquidity borrowing rate 50 bp above the base rate, preserving the policy corridor for interbank funding.