UAE Central Bank Maintains Interest Rate at 3.65%

Jul 29, 2026

50 min

Jul 29, 2026 18:31

UAE keeps key interest rate unchanged in July, mirroring US Fed move

## UAE Aligns with US Fed Decision

The Central Bank of the UAE (CBUAE) has decided to keep its Base Rate for the Overnight Deposit Facility (ODF) steady at 3.65%. This decision mirrors the recent move by the US Federal Reserve, which also opted to maintain its interest rates.

## Response to Economic Conditions

The decision comes amid ongoing high inflation and rising energy prices in the US. By aligning with the US Fed's stance, the UAE aims to maintain stability in its monetary policy.

## Short-term Liquidity Rates

In addition to holding the Base Rate, the CBUAE will continue to apply an interest rate of 50 basis points above the Base Rate for short-term liquidity borrowing from the central bank. This measure affects all standing credit facilities.

## Monetary Policy Implications

The Base Rate, linked to the US Federal Reserve’s Interest on Reserve Balances (IORB), serves as a benchmark for overnight money market interest rates in the UAE, reflecting the broader monetary policy direction.

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