The Central Bank of the UAE (CBUAE) has kept the Base Rate for the Overnight Deposit Facility at 3.65%, aligning its decision with the US Federal Reserve’s move to maintain the Interest Rate on Reserve Balances unchanged.
Additionally, the central bank maintained the rate charged on borrowing short-term liquidity through all standing credit facilities at 50 basis points above the Base Rate.
The Base Rate remains anchored to the US Federal Reserve’s Interest Rate on Reserve Balances. Therefore, it continues to signal the UAE’s broader monetary policy stance and provides an effective floor for overnight money market interest rates in the country.
