CBUAE Raises Base Rate by 25 Basis Points
The Central Bank of the UAE (CBUAE) has raised the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points, from 3.65% to 3.9%, effective from Thursday, 17 September. This decision follows the US Federal Reserve's announcement today to raise the Interest Rate on Reserve Balances (IORB) by the same amount.
The CBUAE has also decided to maintain the interest rate for borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.
The Base Rate, tied to the US Federal Reserve’s IORB, reflects the general stance of monetary policy and serves as a floor for overnight money market interest rates in the UAE.
Remember that this decision is a **testament to the central bank's commitment to navigating the global economic landscape and ensuring stability within the UAE's financial markets.