The Overnight Deposit Facility (ODF) Base Rate will remain at 5.40%, per the decision made by the Central Bank of the United Arab Emirates (UAE).
This decision was made after, according to AFP, the US Federal Reserve declared it had made “some further progress” in its fight against inflation on Wednesday and kept its key lending rate unchanged.
After two days of discussion, policymakers unanimously decided to keep the US central bank’s benchmark interest rate between 5.25 and 5.50 percent. The Fed made this announcement in a statement.
Additionally, the CBUAE has decided to keep all standing credit facilities’ interest rates at 50 basis points above the Base Rate when it comes to borrowing short-term liquidity from the organisation.
The Base Rate serves as an effective floor for interest rates in the UAE’s overnight money market and signals the overall direction of monetary policy. It is anchored to the US Federal Reserve’s IORB.
According to the US Federal Reserve, its efforts to combat inflation have made “some further progress.”AFP reports that the US Federal Reserve declared it had made “some further progress” in its fight against inflation on Wednesday, maintaining the status quo for its benchmark lending rate.
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