The Central Bank of the UAE (CBUAE) has opted to keep the Base Rate for the Overnight Deposit Facility (ODF) steady at 5.40 percent.
This choice follows the US Federal Reserve’s announcement today to leave the Interest Rate on Reserve Balances (IORB) unchanged.
Additionally, the CBUAE has decided to maintain the interest rate for short-term liquidity borrowing from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.
The Base Rate, which is linked to the US Federal Reserve’s IORB, indicates the overall stance of monetary policy and sets an effective floor for overnight money market interest rates in the UAE.