The Central Bank of the UAE Raises Interest Rate

  • Publish date: Thursday، 22 December 2022
Related articles
Kuwait Central Bank Expects Minimal Impact of SVB on Kuwaiti Banks
Kuwait Banks Set Stricter Rules for Expat Loan Approval
Kuwait's Central Bank Launched ATM Services for Eidiya

(WAM) The Central Bank of the UAE (CBUAE) has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 75 basis points, effective from Thursday, 16 June 2022.

This decision was taken following the US Federal Reserve Board’s announcement on 15 June 2022 to increase the Interest on Reserve Balances (IORB) by 75 basis points.

The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate.

The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of the CBUAE’s monetary policy. It also provides an effective interest rate floor for overnight money market rates.

This article was previously published on UAE Moments.To see the original article, click here