CBUAE Cuts Base Rate to 4.40% Following Fed Decision

UAE, 19 December, 2024 : The Central Bank of the UAE (CBUAE) announced a 25-basis-point cut to the Base Rate of its Overnight Deposit Facility (ODF), reducing it from 4.65% to 4.40%. The change takes effect on Thursday, 19 December 2024.

This decision aligns with the US Federal Reserve’s move to lower its Interest Rate on Reserve Balances (IORB) by 25 basis points.

The CBUAE will maintain the borrowing rate for short-term liquidity at 50 basis points above the Base Rate for all standing credit facilities. The Base Rate, linked to the Federal Reserve’s IORB, reflects the monetary policy stance and establishes a floor for overnight money market rates in the UAE.