The Central Bank keeps the “base rate” at 15 basis points

 The Central Bank of the United Arab Emirates decided to keep the “base rate” on the overnight deposit facility at 15 basis points, as of today.

This decision comes after the US Federal Reserve announced setting the interest rate on reserve balances at 15 basis points at its meeting held yesterday.

The Central Bank also decided to keep 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 determines the general position of the central bank's monetary policy, will be linked to the interest rate on reserve balances approved by the US Federal Reserve, starting today.

This comes after the US Federal Reserve announced the replacement of the rates applied to the interest rate on excess reserves and the interest rate on mandatory reserves at a unified rate as of today, knowing that the interest rate on excess reserves was the one that set the base rate for the Central Bank previously.

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