World News | UAE central bank raises benchmark interest rate by 25 basis points

Abu Dhabi [UAE]4th May (ANI/WAM): The Central Bank of the UAE (CBUAE) has decided to increase the base rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points from 4.90% to 5.15% from 4 May 2023. day, thursday.

The decision follows the US Federal Reserve Board’s announcement on May 3, 2023, to increase interest on reserve balances (IORB) by 25 basis points.

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The CBUAE also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the benchmark rate.

The benchmark interest rate is linked to the Federal Reserve’s IORB, indicating the overall stance of the CBUAE’s monetary policy. It also provides an effective interest rate floor for overnight money market rates. (ANI/WAM)

Read also | The Fed raised interest rates by 25 basis points, the tenth consecutive hike since March 2022.

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