UAE Lowers Rate After US Fed Decision

The Central Bank of the United Arab Emirates lowered its overnight deposit facility base rate by 25 basis points to 3.65% in December 2025, in line with the U.S. Federal Reserve's rate cut. The UAE Central Bank’s base rate, tied to the Fed's reserve rate, underpins the UAE's monetary policy stance and establishes a benchmark for overnight market interest rates within the country.

The Central Bank of the United Arab Emirates (CBUAE) lowered its overnight deposit facility base rate by 25 basis points to 3.90% on October 29th, 2025, down from 4.15%. The move followed the US Federal Reserve’s decision to reduce the Interest Rate on Reserve Balances by 25 basis points. "The CBUAE has also 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," the central bank said in a statement. The UAE’s base rate, which is anchored to the Fed’s reserve rate, serves as a key monetary policy tool and a benchmark for overnight market interest rates in the country.

The Central Bank of the United Arab Emirates (CBUAE) maintained its overnight deposit facility base rate at 4.40% on July 30, 2025, unchanged from the previous level. The move followed the US Federal Reserve’s decision to keep borrowing costs steady for a fifth consecutive meeting. "The CBUAE has also 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," the central bank said in a statement. The UAE’s base rate, which is linked to the Fed’s reserve rate, serves as a key monetary policy tool and a benchmark for overnight market interest rates in the country.