Abu dhabi: The Central Bank of the UAE (CBUAE) has decided to cut the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points, reducing it from 4.40% to 4.15%, effective from Thursday, 18 September. This move comes in response to the US Federal Reserve’s recent announcement to decrease the Interest Rate on Reserve Balances (IORB) by the same amount.

According to Emirates News Agency, the CBUAE has also chosen to keep the interest rate for 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 tied to the US Federal Reserve’s IORB, indicates the general direction of monetary policy and offers a baseline for overnight money market interest rates in the UAE.