The Central Bank raises the base rate by 25 basis points
The Central Bank of the United Arab Emirates decided to raise the “base rate” on the overnight deposit facilities by 25 basis points – from 4.4% to 4.65%, as of Thursday, February 02, 2023.
This decision follows the Federal Reserve’s announcement to raise the interest rate on balances The reserve amounted to 25 basis points in its meeting held on February 1, 2023.
The Central Bank also decided to maintain the rate that applies 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 is linked to the interest rate on reserve balances approved by the US Federal Reserve, determines the overall stance of the central bank's monetary policy.
It also provides a minimum effective interest rate for the overnight money market rates in the country.
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