UAE Central Bank raises Base Rate by 50 basis points

Abu Dhabi on May 4 (US): The Central Bank of the UAE has decided to raise the base rate applicable to the Overnight Deposit Facility (ODF) by 50 basis points, effective Thursday, May 5, 2022.

This decision was made after the US Federal Reserve announced on May 4, 2022 an increase in the Reserve Balances Interest (IORB) by 50 basis points.

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

The base rate, which is linked to the US Federal Reserve Board IORB, indicates the general stance of the monetary policy of the Central Bank of the UAE. It also provides an effective minimum interest rate for overnight money market rates.

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