CBUAE Lowers Base Rate to 4.90% Following U.S. Federal Reserve Cut

UAE, 19 September, 2024 : The Central Bank of the UAE (CBUAE) has reduced the Base Rate for the Overnight Deposit Facility (ODF) by 50 basis points, from 5.40% to 4.90%, effective 19 September 2024. This move follows the U.S. Federal Reserve’s similar rate cut on Interest Rate on Reserve Balances (IORB).

The CBUAE will also keep the interest rate for borrowing short-term liquidity at 50 basis points above the Base Rate for all standing credit facilities. The Base Rate, aligned with the U.S. Federal Reserve’s IORB, reflects the monetary policy stance and sets the floor for overnight money market rates in the UAE.

Source : www.centralbank.ae