This announcement was made by CBUAE on Thursday, 18 September 2025. The adjustment took effect on the same day.
The Central Bank of the UAE (CBUAE) has lowered the Base Rate for the Overnight Deposit Facility (ODF) by 25 basis points, reducing it from 4.40% to 4.15%.
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.
This decision was taken following the US Federal Reserve’s announcement to reduce the Interest Rate on Reserve Balances (IORB) by 25 basis points.
The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.
This announcement was made by CBUAE on Thursday, 18 September 2025. The adjustment took effect on the same day.