UAE Central Bank Holds Base Rate at 3.9 Percent Following US Fed Decision

The Central Bank of the United Arab Emirates has decided to keep its base rate applicable to overnight deposit facilities unchanged at 3.9 percent, Emirates 24|7 reported.

The regulatory decision followed an announcement by the US Federal Reserve to maintain its interest rate on reserve balances unchanged during its meeting.

The Central Bank also maintained the interest rate applicable to short-term liquidity borrowing from the Central Bank through all existing credit facilities at 50 basis points above the base rate.

According to the report, the UAE base rate is anchored to the US Federal Reserve's interest rate on reserve balances, determining the overall monetary policy stance and establishing a lower effective interest rate for overnight money market rates in the country.