UAE Central Bank keeps interest rates unchanged after US Fed decision

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.

" 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 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.