UAE Keeps Key Rates at 3.65% After Fed Move

2026-06-18 01:36 By Chusnul Chotimah 1 min. read

The Central Bank of the UAE (CBUAE) on Wednesday maintained its overnight deposit facility base rate at 3.65%.

The decision followed a similar move by the US Federal Reserve, which continued to hold the federal funds rate unchanged at 3.50%-3.75% at its June meeting.

The UAE’s monetary policy remains closely aligned with that of the Fed, as the dirham is pegged to the US dollar.

"This decision was taken following the US Federal Reserve’s announcement today to keep the Interest Rate on Reserve Balances (IORB) unchanged," the central bank said in a statement.

The central bank 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.



News Stream
UAE Keeps Key Rates at 3.65% After Fed Move
The Central Bank of the UAE (CBUAE) on Wednesday maintained its overnight deposit facility base rate at 3.65%. The decision followed a similar move by the US Federal Reserve, which continued to hold the federal funds rate unchanged at 3.50%-3.75% at its June meeting. The UAE’s monetary policy remains closely aligned with that of the Fed, as the dirham is pegged to the US dollar. "This decision was taken following the US Federal Reserve’s announcement today to keep the Interest Rate on Reserve Balances (IORB) unchanged," the central bank said in a statement. The central bank 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.
2026-06-18
UAE Holds Interest Rate, Follows Fed
The Central Bank of the UAE kept its overnight deposit facility base rate unchanged at 3.65% in April 2026, mirroring the Federal Reserve’s decision to hold its key rates for a third consecutive month. The UAE’s monetary policy remains closely aligned with the Fed, as the dirham is pegged to the US dollar. Stable policy rates are expected to support steady borrowing costs, including mortgage rates, across the country. Policymakers in the US signaled a cautious, data-dependent approach going forward, with close attention to inflation trends, labor market conditions, and global risks, including geopolitical tensions.
2026-04-30
UAE Lowers Interest Rate, Follows Fed
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.
2025-12-10