UAE central bank holds base rate steady at 4.40%
UAE’s non-oil trade surged 24% in H1 2025, hitting AED 1.7 trillion—outpacing global trade growth of just 1.75%
Dubai Desk
The Dubai Desk reports on major developments across the UAE, covering news, culture, business, and social trends shaping the region.
Non-oil exports rose 44.7%, driven by new trade deals and expanding global partnerships with countries like India, Turkey, and Switzerland.
The Central Bank of the UAE (CBUAE) has announced that it will keep the Base Rate for the Overnight Deposit Facility (ODF) unchanged at 4.40%, following the US Federal Reserve’s decision to leave its Interest Rate on Reserve Balances (IORB) unchanged.
In line with this move, the CBUAE also maintained the interest rate for borrowing short-term liquidity through all standing credit facilities at 50 basis points above the Base Rate.
The UAE’s base rate is directly tied to the US Fed’s IORB, serving as a key indicator of the country’s monetary policy stance and establishing an effective floor for overnight interest rates in domestic money markets.
The decision reinforces the UAE’s commitment to maintaining monetary stability in alignment with global financial developments.
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