CBUAE Maintains Base Rate at 3.65%

Abu dhabi: The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 3.65%. This decision aligns with the broader monetary policy strategy and follows the recent announcement by the US Federal Reserve to keep the Interest Rate on Reserve Balances (IORB) unchanged.According to Emirates News Agency, the CBUAE has also opted 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. This measure is crucial for providing stability and predictability in the UAE's financial environment.The Base Rate, which is anchored to the US Federal Reserve's IORB, plays a significant role in signaling the general stance of monetary policy. It is designed to provide an effective floor for overnight money market interest rates in the UAE, ensuring that the financial system remains robust and responsive to both domestic and international economic conditi ons.