The Central Bank of the UAE (CBUAE) has decided to raise the base rate applicable to the Overnight Deposit Facility (ODF), official sources have said.
The increase is of 25 basis points, said the sources.
The new rates are said to be effective from Thursday, March 17.
This decision was taken following the US Federal Reserve’s announcement on Wednesday to increase the Interest on Reserve Balances (IORB) by 25 basis points.
The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from it through all standing credit facilities at 50 basis points above the base rate.
The base rate is anchored to the US Federal Reserve’s IORB.
It signals the general stance of the CBUAE’s monetary policy.
It also provides an effective interest rate floor for overnight money market rates.
