– The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate for the Overnight Deposit Facility (ODF) at 5.40 percent, in line with the US Federal Reserve’s decision to keep the Interest Rate on Reserve Balances (IORB) unchanged, signaling stability in the domestic financial market.

– The CBUAE has kept the interest rate for borrowing short-term liquidity at 50 basis points above the Base Rate for all standing credit facilities, ensuring predictable and manageable borrowing costs for financial institutions.

– Anchored to the US Federal Reserve’s IORB, the Base Rate provides an effective floor for overnight money market interest rates in the UAE, stabilizing market expectations and interbank lending rates, and promoting economic stability amid global financial uncertainties.

The Central Bank of the UAE (CBUAE) has opted to keep the Base Rate for the Overnight Deposit Facility (ODF) steady at 5.40 percent.

This decision aligns with the recent move by the US Federal Reserve to leave the Interest Rate on Reserve Balances (IORB) unchanged. By maintaining this rate, the CBUAE aims to ensure stability in the domestic financial market, reflecting its broader monetary policy stance.

The CBUAE has decided to uphold the interest rate for short-term liquidity borrowing at 50 basis points above the Base Rate across all standing credit facilities.

This measure indicates a cautious approach, ensuring that borrowing costs remain predictable and manageable for financial institutions seeking short-term liquidity.

The Base Rate, linked to the US Federal Reserve’s IORB, serves as a critical benchmark for the UAE’s monetary policy.

It sets a baseline for overnight money market interest rates, effectively creating a floor that helps stabilize market expectations and interbank lending rates.

By keeping this rate unchanged, the CBUAE aims to maintain a consistent monetary policy framework, which is vital for sustaining investor confidence and promoting economic stability amid global financial uncertainties.