FX.co ★ UAE Holds Base Rate at 4.4%

The Central Bank of the United Arab Emirates (CBUAE) announced on May 8, 2025, that it will maintain its overnight deposit facility base rate at 4.40%. This decision mirrors the US Federal Reserve's choice to keep borrowing costs stable. Additionally, the CBUAE has decided to retain the interest rate for borrowing short-term liquidity at 50 basis points above the base rate for all standing credit facilities, as stated in their official release. The UAE's base rate, which is tied to the Federal Reserve's reserve rate, remains a crucial monetary policy instrument and serves as a benchmark for overnight market interest rates within the nation.