CBUAE Holds Steady: Interest Rates Unchanged Amid Global Caution

The Central Bank of the UAE (CBUAE) announced it will maintain its key interest rate, following the lead of the United States Federal Reserve. In a recent post on social media, the bank confirmed that the base rate for the Overnight Deposit Facility (ODF) would stay at 4.40 percent.

Reflecting the Federal Reserve's decision to keep its Interest Rate on Reserve Balances unchanged, the CBUAE also opted to leave the rate for borrowing short-term liquidity unaltered, setting it at 50 basis points above the base rate. This decision aligns with predictions from financial experts who anticipated no change in UAE rates.

Federal Reserve Chairman Jerome Powell underscored the importance of supporting maximum employment and stable inflation in the US as reasons for holding rates steady. The Federal Open Market Committee (FOMC) emphasized ongoing evaluation of economic data and risks before considering further rate changes.

(With inputs from agencies.)