The Central Bank of the UAE (CBUAE) raised the Base Rate applicable to the Overnight Deposit Facility by 25 basis points to 3.90% from 3.65%, effective September 17, 2026, following the US Federal Reserve’s equivalent increase in the Interest Rate on Reserve Balances. Over the past year, the CBUAE cut the rate by 25 basis points in each of September, October and December 2025, taking it from 4.40% to 3.65%, before holding it through July 2026. The central bank maintained the rate for borrowing short-term liquidity through all standing credit facilities at 50 basis points above the Base Rate, which is anchored to the Federal Reserve rate and provides an effective floor for overnight UAE money-market rates.
2026-09-16Central Bank of the UAE
Central Bank of the UAE Raises Base Rate by 25 Basis Points to 3.90%
The Central Bank of the UAE raised the Overnight Deposit Facility Base Rate by 25 basis points to 3.90%, effective September 17, 2026, following an equivalent U.S. Federal Reserve increase. The rate on short-term liquidity borrowing through standing credit facilities remains 50 basis points above the Base Rate.