UAE Central Bank keeps key interest rate unchanged after US Fed decision

The base rate applicable to the Overnight Deposit Facility (ODF) stands at 4.40%

Last updated:
Justin Varghese, Your Money Editor
1 MIN READ
The Central Bank of the UAE (CBUAE)
The Central Bank of the UAE (CBUAE)
Supplied

Dubai: The Central Bank of the UAE (CBUAE) announced late Wednesday it has decided to maintain the base rate applicable to the Overnight Deposit Facility (ODF) at 4.40 per cent.

This decision was taken following the US Federal Reserve’s announcement today to keep the Interest Rate on Reserve Balances (IORB) unchanged.

Ahead of the decision, the central banks were largely expected to keep its benchmark rate steady, with traders' attention shifts to potential details or signs on how many interest rate cuts are forecasted for this year.

"The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities," the apex bank said in a statement.

(The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.)

Justin Varghese
Justin VargheseYour Money Editor
Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.

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