Abu dhabi: The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 3.65%. This decision aligns with the recent announcement by the US Federal Reserve to keep the Interest Rate on Reserve Balances (IORB) unchanged.

According to Emirates News Agency, the CBUAE has also opted 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. This move underscores the CBUAE's monetary policy strategy, which is closely linked to the US Federal Reserve's IORB.

The Base Rate, which is anchored to the US Federal Reserve's IORB, indicates the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE. By maintaining the Base Rate, the CBUAE aims to signal stability in its monetary policy approach, ensuring a consistent framework for financial institutions operating within the UAE.