The decision follows the US Federal Reserve’s announcement earlier today to leave the Interest Rate on Reserve Balances (IORB) unchanged.

Interest rate on short-term liquidity maintained

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.

Base rate anchored to US federal reserve policy

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.