The Central Bank of the UAE (CBUAE) has decided to raise the Overnight Deposit Facility (ODF) Base Rate by 75 basis points, with effect from Thursday, June 16, 2022. Following the announcement by the US Federal Reserve Board on June 15, 2022, to raise the Interest on Reserve Balances (IORB) by 75 basis points, this decision was made.

In addition, the CBUAE has opted to keep the cost of borrowing short-term liquidity from the CBUAE via all standing credit facilities at 50 basis points over the Base Rate. The CBUAE’s monetary policy is signalled by the Base Rate, which is tied to the IORB of the US Federal Reserve. It also gives overnight money market rates an effective interest rate floor.

Meanwhile, central banks in the Gulf Cooperation Council (GCC) have lifted their benchmark interest rates. Read more about other GCC countries here.