Abu Dhabi, May 3 (BNA): The Central Bank of the United Arab Emirates decided to raise the base rate applicable to the overnight deposit facility by 25 basis points – from 4.90% to 5.15%, effective from Thursday. May 4, 2023.
This decision was made after the US Federal Reserve announced on May 3, 2023 an increase in the Interest on Reserve Balances (IORB) by 25 basis points.
The central bank also decided to maintain the rate applied to borrowing short-term liquidity from the central bank through all perpetual credit facilities at 50 basis points above the base rate.
The base rate, which is linked to the US Federal Reserve IORB, indicates the general monetary policy stance of the UAE Central Bank. It also provides a minimum effective interest rate for overnight money market rates.