The Central Bank of the UAE (CBUAE) has decided to keep the Base Rate for the Overnight Deposit Facility (ODF) unchanged at 4.40%. This decision aligns with the recent announcement from the US Federal Reserve, which also chose to maintain its Interest Rate on Reserve Balances (IORB) at the current level.

In addition to the Base Rate, the CBUAE has opted to retain the interest rate for borrowing short-term liquidity from the bank at 50 basis points above the Base Rate for all standing credit facilities. This measure ensures that the monetary policy remains stable and predictable in the region.

The Base Rate serves as a key indicator of the monetary policy stance in the UAE and establishes a floor for overnight money market interest rates, indicating the interconnectedness of the UAE’s financial system with the US monetary policy framework.