A view of the entrance of the UAE Central Bank.
Gulf Today, Staff Reporter
The Central Bank of the UAE decided to raise the base rate on overnight deposit facilities by 50 basis points, as of Thursday, May 05, 2022.
This decision comes after the Federal Reserve announced an increase in the interest rate on reserve balances by 50 basis points at its meeting held on May 04, 2022.
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 is linked to the interest rate on reserve balances approved by the US Federal Reserve, determines the general position of the monetary policy of the Central Bank.
It also provides a minimum effective interest rate for overnight cash market rates in the country.