By Staff Reporter
The Central Bank of the UAE has kept its base rate for the Overnight Deposit Facility (ODF) unchanged at 4.40 percent, aligning with the US Federal Reserve’s decision to maintain its interest rate on reserve balances.
Announced on Wednesday, the move reflects the UAE’s continued monetary policy alignment with the US, due to the dirham’s peg to the US dollar. The base rate, anchored to the Fed’s Interest on Reserve Balances (IORB), plays a key role in guiding market interest rates and signaling the central bank’s policy stance.
In addition to the base rate, the UAE Central Bank also maintained the interest rate on short-term borrowing at 50 basis points above the base rate for all standing credit facilities.
The decision aims to support monetary stability and ensure consistency in domestic financial conditions, following global trends led by the US Federal Reserve.
News Source: Emirates News Agency
