UAE Central Bank raises base rate by 25 basis points

The rate hike set the benchmark overnight interest rate in the 5.15% to 5.40% range

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By WAM

Published: Wed 26 Jul 2023, 10:21 PM

Last updated: Wed 26 Jul 2023, 11:30 PM

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 percent, effective from Thursday, 27th July, 2023.

This decision was taken following the US Federal Reserve Board’s announcement on 26th July, 2023, to increase the Interest on Reserve Balances (IORB) by 25 basis points.

The CBUAE also has 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.

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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.

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WAM

Published: Wed 26 Jul 2023, 10:21 PM

Last updated: Wed 26 Jul 2023, 11:30 PM

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