UAE Central Bank Keeps Interest Rate Steady After US Fed Decision

The UAE Central Bank has kept its key interest rate unchanged, mirroring the U.S. Federal Reserve's steady rate stance.

- TBG NETWORK

The Central Bank of the United Arab Emirates (CBUAE) has decided to maintain its key interest rate, aligning with the U.S. Federal Reserve's recent decision to hold its benchmark rates steady. In a post on the social media platform X, formerly known as Twitter, the CBUAE confirmed that the Base Rate applicable to the Overnight Deposit Facility (ODF) would remain unchanged at 4.40 percent.

The central bank's move closely mirrors the decision made by the U.S. Federal Reserve, which opted not to alter its Interest Rate on Reserve Balances (IORB). As the UAE dirham is pegged to the U.S. dollar, monetary policy decisions in the UAE often follow the lead of the Federal Reserve to maintain currency stability and financial consistency.