CBUAE Lowers the Base Rate by 50 Basis Points

The Central Bank of the UAE (CBUAE) has decided to cut the Base Rate applicable to the Overnight Deposit Facility (ODF) by 50 basis points, from 5.40% to 4.90%, effective from Thursday, 19 September.

This decision was taken following the US Federal Reserve’s announcement
today to reduce the Interest Rate on Reserve Balances (IORB) by 50 basis
points.

The CBUAE has also decided to maintain the interest rate applicable to
borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.

The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals
the general stance of monetary policy and provides an effective floor for
overnight money market interest rates in the UAE.