UAE Central Bank holds base rate at 3.65%

Dubai: The Central Bank of the United Arab Emirates has decided to keep the interest rate, or “base rate,” on overnight deposit facilities unchanged at 3.65%.The decision follows the US Federal Reserve’s announcement to maintain the interest rate on reserve balances at its meeting held today.The Central Bank also decided to maintain the rate applicable to short-term liquidity borrowing 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 adopted by the US Federal Reserve, determines the overall stance of monetary policy and provides a lower effective interest rate for overnight money market rates in the country.