UPDATE

UAE Central Bank cuts key interest rate for first time in 2025, mirroring US Fed move

Base rate applicable to the Overnight Deposit Facility (ODF) lowered to 4.15% from 4.40%

Last updated: September 17, 2025 | 22:10

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UAE Central Bank cuts key interest rate for first time in 2025, mirroring US Fed move

WAM

Dubai: The Central Bank of the UAE (CBUAE) announced late Wednesday it has decided to lower the base rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points to 4.15 per cent from 4.40%.

This decision was taken following the US Federal Reserve’s announcement today to reduce the Interest Rate on Reserve Balances (IORB) by 25 basis points, the central bank said in a statement.

"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 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 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.