UAE Central Bank raises base rate 25 basis points

The Central Bank of the UAE (CBUAE) has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points, from 5.15 to 5.40 per cent.

The decision, effective from Thursday, July 27, was made following the US Federal Reserve Board’s announcement to increase the Interest on Reserve Balances (IORB) by 25 basis points.

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

قرر #مصرف_الإمارات_المركزي رفع سعر الأساس على تسهيلات الإيداع لليلة واحدة بـ 25 نقطة أساس – من 5.15% إلى 5.40%، وذلك اعتباراً من يوم الخميس 27 يوليو 2023.

The #CentralBankUAE has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points… pic.twitter.com/nllElYubh0

— Central Bank of the UAE (@centralbankuae) July 26, 2023

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