UAE c. bank cuts base rate by 25 basis points

The Central Bank of the UAE (CBUAE) on Wednesday lowered its Base Rate for the Overnight Deposit Facility by 25 basis points to 3.65 per cent, effective Thursday, 11 December. The decision follows the US Federal Reserve’s 25-basis-point cut to its Interest Rate on Reserve Balances.

The CBUAE also kept the rate for borrowing short-term liquidity at 50 basis points above the Base Rate for all standing credit facilities. The Base Rate, linked to the Fed’s IORB, sets the tone for UAE monetary policy and acts as a floor for overnight money market rates.

Attribution: Emirates News Agency (WAM)