CBUAE Maintains Base Rate at 4.40% Amid US Federal Reserve’s Decision

Abu Dhabi: The Central Bank of the UAE (CBUAE) has announced its decision to maintain the Base Rate for the Overnight Deposit Facility (ODF) at 4.40 percent. This decision comes in the wake of the US Federal Reserve's announcement to keep the Interest Rate on Reserve Balances (IORB) unchanged. According to Emirates News Agency, the CBUAE has also decided to keep the interest rate for borrowing short-term liquidity from the CBUAE at a level 50 basis points above the Base Rate for all standing credit facilities. The Base Rate, which is linked to the US Federal Reserve's IORB, serves as an indicator of the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.