The Central Bank of the UAE (CBUAE) has announced that the base rate for the overnight deposit facility (ODF) will remain at 4.40%. This decision aligns with the US Federal Reserve’s move to keep the interest rate on reserve balances (IORB) unchanged.
The CBUAE will maintain the short-term borrowing rate for all standing credit facilities at 50 basis points above the base rate.
As the base rate is tied to the US Federal Reserve’s IORB, it serves as a key indicator of the UAE’s monetary policy stance and establishes a benchmark for overnight money market interest rates in the country.
Gulf Economist Staff Writer