The Central Bank of the UAE (CBUAE) maintained its overnight deposit facility base rate at 3.9% on Wednesday. The decision followed a similar move by the US Federal Reserve, which held the federal funds rate unchanged at 3.75%–4.00% at its October meeting. The UAE’s monetary policy remains closely aligned with that of the Fed. The Base Rate determines the overall stance of monetary policy and provides an effective floor for overnight money market rates in the country. The central bank 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.
Leave A Comment