The Central Bank of the UAE (CBUAE) announced on Wednesday evening that it has opted to keep the base rate for the Overnight Deposit Facility (ODF) steady at 4.40 per cent.
This decision comes in response to the US Federal Reserve’s move earlier today to leave the Interest Rate on Reserve Balances (IORB) unchanged.
The CBUAE has further resolved to retain the interest rate for accessing short-term liquidity through all standing credit facilities at 50 basis points above the Base Rate, according to an official statement.
The Base Rate, which is linked to the US Federal Reserve’s IORB, reflects the general direction of monetary policy and serves as an effective lower limit for overnight interest rates in the UAE money market.
