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UAE raises base rate by 25 bp


ABU DHABI, 22nd March 2023 (WAM) — The Central Bank of the UAE (CBUAE) has decided to increase the base rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points from 4.65% to 4.90 % effective Thursday, March 23, 2023.

This decision follows the US Federal Reserve Board’s March 22, 2023 announcement of a 25 basis point increase in the interest rate on reserve balances (IORB).

The CBUAE has also decided to maintain the rate applicable to the short-term liquidity loan to the CBUAE through all permanent credit lines at 50 basis points above the base rate.

The base rate pegged to the US Federal Reserve’s IORB indicates the general monetary policy stance of the CBUAE. It also provides a minimum effective interest rate floor for overnight money market rates.

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