The Central Bank of the UAE has decided to keep the” base rate ” on overnight deposit facilities unchanged at 5.40%.
The bank pointed out in a statement that this decision comes after the announcement of the Federal Reserve to keep the interest rate on the reserve balances unchanged.
The central bank also decided to keep the interest rate applicable to borrowing short-term liquidity from the central 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 the reserve balances approved by the US Federal Reserve, determines the general position of the monetary policy of the central bank and provides a minimum effective interest rate for overnight money market interest rates in the country.