Sharjah24 – WAM: The Central Bank of the United Arab Emirates (CBUAE) has decided to increase the Base Rate applicable to the Overnight Deposit Facility (ODF) by 75 basis points – from 2.4% to 3.15%, effective from Thursday September 22, 2022.
This decision was made following the announcement on September 21, 2022 by the US Federal Reserve Board to increase interest on reserve balances (IORBs) by 75 basis points.
The CBUAE has also decided to maintain the rate applicable to the short-term cash loan from the CBUAE across all permanent lines of credit at 50 basis points above the Base Rate.
The base rate, pegged to the US Federal Reserve’s IORB, signals the general monetary policy stance of the CBUAE. It also provides a minimum effective interest rate for overnight money market rates.