Abu Dhabi: «The Gulf»
The Central Bank of the Emirates decided to raise the “base rate” on the overnight deposit facilities by 75 basis points – from 2.4% to 3.15%, as of Thursday, September 22, 2022.
This decision comes after the Federal Reserve announced an increase in the interest rate on reserve balances by 75 basis points at its meeting held on September 21, 2022.
The Central Bank also decided to keep the rate applicable to borrowing short-term liquidity from the Central Bank through all existing credit facilities at 50 basis points above the base rate.
The base rate, which is linked to the interest rate on reserve balances approved by the US Federal Reserve, determines the general position of the monetary policy of the Central Bank. It also provides a minimum effective interest rate for overnight cash market rates in the country.