CBUAE lowers Base Rate by 50 basis points

ABU DHABI (WAM)

The Central Bank of the UAE (CBUAE) decided to cut the Base Rate applicable to the Overnight Deposit Facility (ODF) by 50 basis points, from 5.40 to 4.90 percent, effective from September 19.

This decision was taken following the US Federal Reserve’s announcement on Wednesday to reduce the Interest Rate on Reserve Balances (IORB) by 50 basis points.

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.

Anchored to the US Federal Reserve’s IORB, the Base Rate signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.