By Staff Reporter
The Central Bank of the UAE (CBUAE) has announced its decision to keep the Base Rate for the Overnight Deposit Facility (ODF) unchanged at 4.40%, following the US Federal Reserve’s move to maintain the Interest Rate on Reserve Balances (IORB).
Additionally, the CBUAE has decided to retain the interest rate for borrowing short-term liquidity at 50 basis points above the Base Rate for all standing credit facilities.
Anchored to the US Federal Reserve’s IORB, the Base Rate serves as a key indicator of the UAE’s monetary policy stance and acts as the effective floor for overnight money market rates. The decision underscores the CBUAE’s commitment to maintaining financial stability and ensuring alignment with global interest rate trends.
By mirroring the Fed’s approach, the UAE aims to sustain liquidity, economic resilience, and investor confidence, reinforcing its position as a regional financial hub.
News Source: Emirates News Agency
