The Central Bank of the United Arab Emirates has decided to maintain the “base rate” for overnight deposit facilities at 3.65%.
This decision follows the announcement by the Federal Reserve to keep the interest rate on reserve balances unchanged during its meeting held today.
Additionally, the central bank will keep the borrowing rate for short-term liquidity from the bank through all existing credit facilities at 50 basis points above the base rate.
The base rate, which is tied to the interest rate on reserve balances set by the US Federal Reserve, reflects the overall monetary policy stance and establishes a minimum for the effective interest rate for overnight money market rates in the country.