UAE Interest Rate Mirrors US Fed Move

The Central Bank of the UAE (CBUAE) has decided to maintain its key interest rate at 3.65% in July, mirroring a similar move by the US Federal Reserve.

This decision affects the Base Rate applicable to the Overnight Deposit Facility (ODF), as well as the interest rate for borrowing short-term liquidity from the CBUAE through various standing credit facilities.

The Base Rate is tied to the US Federal Reserve's IORB, which serves as a signal of the UAE's overall monetary policy stance and provides a floor for overnight money market interest rates in the country.