The Central Bank of the UAE (CBUAE) followed the US Federal Reserve’s decision to keep interest rates unchanged to protect their currencies’ peg against the greenback.
CBUAE maintained the base rate applicable to the overnight deposit facility without change at 5.40%.
The Federal Reserve held interest rates at a 23-year high as officials affirmed their view for three rate cuts this year even as they upgraded the economic outlook
CBUAE maintained the interest rate applicable to borrowing short-term liquidity from the central bank at 50 basis points above the base rate for all standing credit facilities.
The base rate, which is anchored to the Federal Reserve’s interest on reserve balances, signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.
