CBUAE raises interest rates after US Federal Bank continues rate hike
- Date: 27-Jul-2023
- Source: Gulf Business
- Sector:Financial Services
- Country:UAE
CBUAE raises interest rates after US Federal Bank continues rate hike
Image: WAM
The Central Bank of UAE (CBUAE) announced an increase in its interest rates in response to a hike in the US Federal Bank’s benchmark rate on July 26, reported state news agency WAM.
The CBUAE has decided to raise the base rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points – from 5.15 to 5.40 percent, effective from July 27.
قرر #مصرف_الإمارات_المركزي رفع سعر الأساس على تسهيلات الإيداع لليلة واحدة بـ 25 نقطة أساس – من 5.15% إلى 5.40%، وذلك اعتباراً من يوم الخميس 27 يوليو 2023.
The #CentralBankUAE has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points… pic.twitter.com/nllElYubh0
— Central Bank of the UAE (@centralbankuae) July 26, 2023
This decision was taken following the US Federal Reserve Board’s announcement, to increase the interest on reserve balances (IORB) by 25 basis points.
The CBUAE has decided to maintain the rate applicable to borrowing short-term liquidity through all standing credit facilities at 50 basis points above the base rate.
US Fed raises interest rates for 11th time
The base rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of the CBUAE’s monetary policy. It also provides an effective interest rate
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