The Central Bank of the UAE has maintained its Base Rate at 3.65 percent, holding monetary policy steady in line with the latest decision by the Federal Reserve.
The move follows the Fed’s decision to keep the Interest Rate on Reserve Balances unchanged, reinforcing the UAE’s policy alignment with US monetary conditions due to the dirham’s peg to the dollar.
In addition to the Base Rate decision, the CBUAE said it will continue to set the interest rate for borrowing short-term liquidity at 50 basis points above the Base Rate across all standing credit facilities.
The Base Rate, linked directly to the Fed’s benchmark, serves as a key policy tool, signaling the central bank’s monetary stance while acting as a floor for overnight money market rates in the UAE.
The decision reflects a broader trend among global central banks to maintain policy stability amid persistent inflation concerns and ongoing geopolitical uncertainty.
With inputs from WAM
