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UAE Central Bank follows US Fed move, holds rates at 5.4%

The US Federal Reserve said it had made 'some further progress' in its inflation fight

Published: Wed 31 Jul 2024, 10:27 PM

Updated: Wed 31 Jul 2024, 10:49 PM

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The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 5.40%.

This decision was taken following the US Federal Reserve left its key lending rate unchanged again on Wednesday and said it had made "some further progress" in its inflation fight, according to AFP.

Policymakers voted unanimously to maintain the US central bank's benchmark interest rate between 5.25 percent and 5.50 per cent, the Fed announced in a statement following two days of deliberations.

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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.

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