UAE's Central Bank Maintains Key Interest Rate at 4.40% Level
The United Arab Emirates' Central Bank Maintains Monetary Policy Tied to US
The Central Bank of the United Arab Emirates (CBUAE) has chosen to keep its overnight deposit facility base rate steady at 4.40%, mirroring the US Federal Reserve's decision to keep interest rates unchanged, as announced today.
In following this decision, the CBUAE has also decided to maintain the interest rate for borrowing short-term liquidity from the bank at 50 basis points above the base rate, which amounts to a rate of 4.90% for all standing credit facilities.
The CBUAE's base rate is linked to the US Federal Reserve's Interest Rate on Reserve Balances (IORB). This connection ensures that the UAE's monetary policy reflects US monetary conditions, serving as a stable foundation for overnight money market interest rates in the country.
By anchoring its policy to the Fed's decisions, the CBUAE aims to maintain currency stability and predictable liquidity conditions within the UAE.
The Central Bank of the United Arab Ememirates (CBUAE) maintains a monetary policy linked to the US Federal Reserve, as indicated by its overnight deposit facility base rate being tied to the US Federal Reserve's Interest Rate on Reserve Balances (IORB). The CBUAE's decision to align its policy with the US aims to ensure currency stability and predictable liquidity conditions within the UAE, which is rooted in the realm of finance.
