The Central Bank of the UAE (CBUAE) on Wednesday kept its overnight deposit facility base rate unchanged at 3.65%. The move mirrors the decision of the US Federal Reserve, which left the federal funds rate steady in a range of 3.50%–3.75% at its June meeting. Because the UAE dirham is pegged to the US dollar, the UAE’s monetary policy generally tracks that of the Fed.
“This decision was taken following the US Federal Reserve’s announcement today to keep the Interest Rate on Reserve Balances (IORB) unchanged,” the CBUAE said in a statement.
The central bank also decided to maintain the interest rate on short‑term liquidity borrowing from the CBUAE at 50 basis points above the base rate for all standing credit facilities.
