UAE Central Bank Maintains Interest Rate at 3.65%

Apr 29, 2026

52 min

Apr 29, 2026 21:32

UAE keeps key interest rate unchanged, mirroring US Fed move

## UAE Aligns with US Federal Reserve

The Central Bank of the UAE (CBUAE) has decided to keep its Base Rate for the Overnight Deposit Facility (ODF) steady at 3.65%. This decision aligns with the recent move by the US Federal Reserve to maintain its interest rates.

## Context of the Decision

The decision comes amid ongoing uncertainty due to geopolitical tensions in the Middle East. This marks the third consecutive meeting where the US Federal Reserve has opted not to change rates, a decision influenced by the current economic climate.

## Implications for UAE Monetary Policy

The Base Rate in the UAE is linked to the US Federal Reserve’s Interest on Reserve Balances (IORB). It serves as a benchmark for overnight money market interest rates in the UAE, indicating the general direction of monetary policy.

## Short-term Liquidity Rates

In addition to maintaining the Base Rate, the CBUAE has kept the interest rate for borrowing short-term liquidity at 50 basis points above the Base Rate for all standing credit facilities.

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