The Central Bank of the United Arab Emirates has decided to maintain the “base rate” on overnight deposit facilities at 4.40%.
This decision follows the announcement from the Federal Reserve to keep the interest rate on reserve balances unchanged during its meeting held today, Wednesday.
Additionally, the central bank will continue to apply a rate of 50 basis points above the base rate for short-term liquidity borrowing from the central bank through all existing credit facilities.
The base rate, which is linked to the interest rate on reserve balances set by the U.S. Federal Reserve, indicates the overall monetary policy stance and establishes a minimum for the actual interest rate for overnight money market rates in the country.