UAE Central Bank raises interest rate by 75 basis points UAE Central Bank raises interest rate by 75 basis points
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UAE Central Bank raises interest rate by 75 basis points

UAE Central Bank raises interest rate by 75 basis points

The US Federal Reserve upped its policy rate by three-quarters of a percentage point for the fourth consecutive time

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The Central Bank of the UAE (CBUAE) has decided to raise the base rate applicable to the overnight deposit facility (ODF) by 75 basis points.

The rate was upped from 3.15 per cent to 3.90 per cent, effective from Thursday, November 3. The decision follows the US Federal Reserve’s announcement on November 2, to increase the interest on reserve balances (IORB) by 75 basis points.

The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the base rate, official news agency WAM reported.

The base rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of the CBUAE’s monetary policy.

The Federal Reserve upped its key policy rate by 75 basis points for the fourth consecutive time, prompting central banks across the GCC to pursue rate hikes.

Saudi Central Bank upped its rate of repurchase agreement by 75 basis points.

Central Bank of Bahrain has also raised its key interest rate by 75 basis points.

Meanwhile, Qatar Central Bank increased its repo rates by 75 basis points.

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