The Central Bank of the UAE (CBUAE) has opted to retain the Base Rate for the Overnight Deposit Facility (ODF) at 5.40 percent.
This decision aligns with the US Federal Reserve’s choice to maintain the Interest Rate on Reserve Balances (IORB). Additionally, the CBUAE has chosen to keep 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, which is linked to the US Federal Reserve’s IORB, serves as an indicator of the general direction of monetary policy and establishes a minimum level for overnight money market interest rates in the UAE.