UAE Central Bank holds base rate at 3.9% after US Federal Reserve keeps rates unchanged

The Central Bank also maintained the short-term liquidity borrowing rate at 50 basis points above the base rate - the decision mirrors the Fed’s unchanged stance on reserve balances

Abu Dhabi: The Central Bank of the United Arab Emirates has decided to maintain the base rate on overnight deposit facilities at 3.9%.

This decision comes after the Federal Reserve announced that it would keep the interest rate on reserve balances unchanged at its meeting held today.

The Central Bank also decided to maintain the rate applicable to short-term liquidity borrowing from the Central Bank through all existing credit facilities at 50 basis points above the base rate.

The base rate, which is linked to the interest rate on reserve balances adopted by the US Federal Reserve, determines the overall stance of monetary policy and provides a lower effective interest rate for overnight money market rates in the country.