The Central Bank of the United Arab Emirates has decided to maintain the interest rate on overnight deposit facilities at 3.65%.
This decision follows the U.S. Federal Reserve’s announcement to keep the interest rate on reserve balances unchanged during its meeting held today.
Additionally, the Central Bank opted to retain the rate applicable for borrowing short-term liquidity from the bank through all existing credit facilities at 50 basis points above the base rate.
The base rate, which is linked to the interest rate on reserve balances set by the U.S. Federal Reserve, defines the general stance of monetary policy. Furthermore, it establishes a minimum threshold for the effective interest rate on overnight money market rates in the country.