The Central Bank of the UAE (CBUAE) has opted to keep the Base Rate for the Overnight Deposit Facility (ODF) unchanged at 4.40%.
This decision follows the US Federal Reserve’s announcement today to hold the Interest Rate on Reserve Balances (IORB) steady.
Additionally, the CBUAE has chosen to maintain the interest rate for borrowing short-term liquidity at 50 basis points above the Base Rate across all standing credit facilities.
Anchored to the US Federal Reserve’s IORB, the Base Rate reflects the overall direction of monetary policy and establishes a minimum benchmark for overnight money market interest rates in the UAE.
