The Central Bank keeps the base rate at 3.65%

The Central Bank of the United Arab Emirates decided to maintain the “base rate” on overnight deposit facilities at 3.65%.

This decision comes after the Federal Reserve announced that it would keep the interest rate on reserve balances unchanged at its meeting held today.

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

The base rate, which is linked to the interest rate on reserve balances approved by the US Federal Reserve, determines the general stance of monetary policy, and also provides a minimum effective interest rate for overnight money market rates in the country.