The Central Bank of the UAE (CBUAE) has kept its Base Rate, which applies to the Overnight Deposit Facility, at 3.9%, following the US Federal Reserve’s decision to hold its Interest Rate on Reserve Balances (IORB) unchanged.
The Base Rate is anchored to the IORB and provides an effective floor for overnight money market rates in the UAE. The central bank also left the rate on short-term liquidity borrowing at 50 basis points above the Base Rate, or 4.4%.
The hold follows a 25 basis point increase on 16 September, when the CBUAE lifted the rate from 3.65% to 3.9%, again mirroring Washington. The UAE had cut rates twice in late 2025, first in October and then in December, before holding at 3.65% through the summer. The decision keeps the UAE’s monetary stance aligned with US policy.
Gulf Economist Staff Writer