CBUAE maintains base rate to ODF at 15 basis points

uae base basis points odf
UAE

CBUAE maintains base rate to ODF at 15 basis points

The Central Bank of the UAE (CBUAE) has maintained the Base Rate applicable to the Overnight Deposit Facility (ODF) at 15 basis points, effective from Thursday, 29 July 2021. This decision was made after the US Federal Reserve Board had set on 28 July 2021 the Interest on Reserve Balances (IORB) at 15 basis points, according to a press release on Thursday. Meanwhile, the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities was maintained at 50 basis points above the Base Rate. The Base Rate, which reflects the general stance of the CBUAE's monetary policy, should follow the US Federal Reserve Board's IORB rate from 29 July 2021. As of 29 July 2021, the Federal Reserve has announced that rates applicable on Interest on Excess Reserves (IOER) and Interest of Requited Reserves (IORR) will be replaced by the single IORB rate. Previously, the rate applicable to IOER had been the anchor for the CBUAE's Base Rate.