CBUAE reduces base rate by 50 basis points

UAE – Mubasher: The Central Bank of the UAE (CBUAE) lowered the base rate applicable to the overnight deposit facility (ODF) by 50 basis points from 5.40% to 4.90%, according to a press release.

This decision was taken following the US Federal Reserve’s announcement to cut the interest rate on reserve balances (IORB) by 50 basis points.

Meanwhile, the central bank decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.

In June, the CBUAE projected that the country's GDP would rise 3.90% in 2024 before accelerating to 6.20% in 2025.

Source: Mubasher Source: {{details.article.source}}