Abu dhabi: The Central Bank of the UAE (CBUAE) has opted to maintain the Base Rate for the Overnight Deposit Facility (ODF) at 4.40%. This move aligns with the recent decision by the US Federal Reserve to leave the Interest Rate on Reserve Balances (IORB) unchanged.
According to Emirates News Agency, the CBUAE also decided to keep the interest rate for borrowing short-term liquidity from the central bank at 50 basis points above the Base Rate for all standing credit facilities. The Base Rate, which is linked to the US Federal Reserve's IORB, serves as an indicator of the monetary policy direction and establishes a floor for overnight money market interest rates in the UAE.
