CBUAE decide to raise the base rate applicable to the ODF

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 from 3.15% to 3.90% with effect from today.

Following the announcement by the US Federal Reserve Board, the interest rate on reserve balances (IORB) will be increased by 75 basis points.

The base rate, which is anchored at the US Federal Reserve's IORB, indicates the general stance of the CBUAE's monetary policy.  It provides an effective interest rate for overnight remittance rates.

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

At the same time, in line with the Saudi Central Bank's target, the Saudi Central Bank decided to raise interest rates by 75 basis points to 4.5 percent and raise the rate on "reverse repo" contracts.