The Central Bank of the UAE (CBUAE) has decided to keep the Base Rate for the Overnight Deposit Facility (ODF) at 4.40%.
This follows the US Federal Reserve’s move to maintain the Interest Rate on Reserve Balances (IORB). Since the UAE dirham is pegged to the US dollar, the CBUAE aligns its monetary policy with the Federal Reserve to support financial stability.
Short-Term Liquidity Rates Remain the Same
The Central Bank of the UAE has also kept the short-term borrowing rate for standing credit facilities at 50 basis points above the Base Rate.
As a key benchmark, the Base Rate helps guide overnight money market interest rates in the UAE. It influences borrowing costs and plays a crucial role in shaping monetary policy.
This decision reflects the CBUAE’s commitment to financial stability while monitoring global economic trends.
