UAE Central Bank Raises Base Rate to 3.9% After US Federal Reserve Hike, Dirham Peg Keeps Policy in Sync

The Central Bank of the UAE said on Wednesday that the Base Rate applicable to its Overnight Deposit Facility will increase from 3.65% to 3.9%, effective Thursday, September 17.

The decision follows the US Federal Reserve’s announcement on September 16 to raise the Interest Rate on Reserve Balances by 25 basis points.

The CBUAE Base Rate is anchored to the Federal Reserve’s Interest Rate on Reserve Balances and signals the general stance of monetary policy in the UAE.

It also provides an effective floor for…