The Central Bank of the UAE (CBUAE) has kept its Base Rate unchanged at 3.65%, following the US Federal Reserve's decision to hold the Interest Rate on Reserve Balances (IORB) at its current level.
The CBUAE also confirmed it will maintain the borrowing rate for short-term liquidity at 50 basis points above the Base Rate across all standing credit facilities.
The Base Rate, which is directly anchored to the Fed's IORB, serves as a benchmark for the UAE's monetary policy stance and sets an effective floor for overnight money market interest rates in the country.
The move reflects the UAE's longstanding monetary alignment with the United States, a relationship sustained by the dirham's peg to the US dollar.
News Source: Emirates News Agency
