FX.co ★ UAE Central Bank Raises Base Rate

The Central Bank of the UAE (CBUAE) raised its Overnight Deposit Facility Base Rate by 25 basis points to 3.9% in September 2026, in line with the US Federal Reserve’s move. The UAE’s monetary policy remains closely tied to that of the Fed due to the dirham’s peg to the US dollar. The decision came after the Fed announced an increase in the federal funds rate target range by 25 basis points to 3.75%–4.00% at its meeting, with a majority of FOMC members signaling expectations of an additional rate hike later this year. The CBUAE also kept the rate on short-term liquidity borrowing through all standing credit facilities at 50 basis points above the Base Rate.