Central Bank of the UAE Maintains Interest Rate at 4.40%
Decision follows Federal Reserve's announcement to keep interest rates unchanged.
The Central Bank of the United Arab Emirates has decided to keep the base rate for overnight deposit facilities at 4.40%.
This decision aligns with the recent announcement from the U.S. Federal Reserve, which also opted to maintain the federal funds rate during its latest meeting.
In addition, the Central Bank has confirmed that the rate applicable for borrowing short-term liquidity through all existing credit facilities will remain at 50 basis points above the base rate.
The base rate is linked to the interest rate on reserve balances set by the U.S. Federal Reserve, which plays a critical role in shaping the overall monetary policy stance in the UAE.
It also establishes a minimum effective interest rate for overnight money market rates in the country.
This decision aligns with the recent announcement from the U.S. Federal Reserve, which also opted to maintain the federal funds rate during its latest meeting.
In addition, the Central Bank has confirmed that the rate applicable for borrowing short-term liquidity through all existing credit facilities will remain at 50 basis points above the base rate.
The base rate is linked to the interest rate on reserve balances set by the U.S. Federal Reserve, which plays a critical role in shaping the overall monetary policy stance in the UAE.
It also establishes a minimum effective interest rate for overnight money market rates in the country.
Translation:
Translated by AI
