The Central Bank of the UAE (CBUAE) has kept its Base Rate unchanged at 3.65%, mirroring the US Federal Reserve's decision to hold its own benchmark rate steady.
The CBUAE applies its Base Rate to the Overnight Deposit Facility (ODF) and anchors it directly to the Fed's Interest Rate on Reserve Balances (IORB). The move reinforces the UAE's longstanding monetary policy alignment with the United States, a reflection of the dirham's peg to the US dollar.
The bank also confirmed that the rate for short-term borrowing through its standing credit facilities will remain at 50 basis points above the Base Rate.
The Base Rate serves as a key policy signal, setting the tone for the UAE's broader monetary stance and acting as an effective floor for overnight money market interest rates across the country.
News Source: Emirates News Agency
