UAE Central Bank Raises Base Rate

2026-09-16 19:04 By Isabela Couto 1 min. read

The Central Bank of the UAE (CBUAE) raised its overnight deposit facility base rate by 25 bps to 3.9% in September 2026, mirroring the Federal Reserve’s decision.

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

The decision followed the Fed’s announcement that it would raise the target range of the federal funds rate by 25 bps to 3.75%-4% at its meeting, while a majority of FOMC members projected another hike this year.

The CBUAE also maintained the rate applicable to short-term liquidity borrowing from the central bank through all standing credit facilities at 50 bps above the Base Rate.



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UAE Central Bank Raises Base Rate
The Central Bank of the UAE (CBUAE) raised its overnight deposit facility base rate by 25 bps to 3.9% in September 2026, mirroring the Federal Reserve’s decision. The UAE’s monetary policy remains closely aligned with that of the Fed, as the dirham is pegged to the US dollar. The decision followed the Fed’s announcement that it would raise the target range of the federal funds rate by 25 bps to 3.75%-4% at its meeting, while a majority of FOMC members projected another hike this year. The CBUAE also maintained the rate applicable to short-term liquidity borrowing from the central bank through all standing credit facilities at 50 bps above the Base Rate.
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