ABU DHABI, (Pakistan Point News - 29th Jul, 2021) The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 15 basis points, effective from Thursday, 29th July 2021.
This decision was taken following the US Federal Reserve board’s announcement on 28th July 2021, to set the Interest on Reserve Balances (IORB) at 15 basis points, CBUAE said in a statement on Thursday.
The Base Rate, which signals the general stance of the CBUAE’s monetary policy, shall be anchored to the US Federal Reserve Board’s IORB rate, effective from 29th July 2021. This follows the Federal Reserve’s announcement that, as of 29th July 2021, rates applicable on Interest on Excess Reserves (IOER) and Interest of Requited Reserves (IORR) will be replaced by the single IORB rate.
Previously, the rate applicable to IOER had been the anchor for the CBUAE’s Base Rate.