UAE c.bank cuts base rate by 50 bps

The Central Bank of the UAE (CBUAE) has cut the Base Rate for the Overnight Deposit Facility (ODF) by 50 basis points, reducing it from 5.40 to 4.90 per cent. The central bankn added that it would also keep the interest rate for borrowing short-term liquidity from the bank at 50 basis points above the Base Rate for all standing credit facilities.

The CBUAE’s decision follows the US Federal Reserve’s announcement of a 50 basis point reduction in the Interest Rate on Reserve Balances (IORB) on Wednesday.

The Base Rate, linked to the Fed’s IORB, indicates the general monetary policy stance and sets a floor for overnight money market interest rates in the UAE.

Attribution: CBUAE

Subediting: Y.Yasser