The Overnight Deposit Facility (ODF) Base Rate will increase by 75 basis points, from 2.4% to 3.15%, as of Thursday, September 22, 2022, after a decision by the Central Bank of the UAE (CBUAE).
This decision was taken following the US Federal Reserve Board’s announcement on 21 September 2022 to increase the Interest on Reserve Balances (IORB) by 75 basis points.
The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate.
The Base Rate, which is tied to the IORB of the US Federal Reserve, conveys the overall direction of the CBUAE’s monetary policy. Additionally, it gives overnight money market rates a useful interest rate floor.
