The Central Bank of the UAE decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 3.65%, following the US Federal Reserve’s announcement.
This US Federal Reserve’s is keeping the Interest Rate on Reserve Balances (IORB) unchanged.
The CBUAE has also decided to maintain the interest rate applicable to 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 anchored to the US Federal Reserve’s IORB, provides an effective floor for overnight money market interest rates in the UAE since UAE rates are pegged to the US dollar.
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