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Posted inBanking & Finance, UAE

UAE central bank maintains base rate at 5.40%

It has decided to maintain the interest rate applicable to borrowing short-term liquidity from the central bank at 50 basis points above the Base Rate for all standing credit facilities

by Staff Writer
Central Bank of the UAE (CBUAE)
The CBUAE maintained the base rate applicable to the Overnight Deposit Facility at 5.40 percent. Image: Shutterstock

The Central Bank of the UAE (CBUAE) decided to keep the status quo on interest rates, with keeping the base rate applicable to the Overnight Deposit Facility (ODF) unchanged at the prevailing 5.40 percent.

It has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the central bank at 50 basis points above the Base Rate for all standing credit facilities.

This UAE central bank’s decision followed the US Federal Reserve’s announcement on Wednesday to keep the interest rate on Reserve Balances (IORB) unchanged.

The CBUAE’s move on 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.

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