The central banks of the UAE and Bahrain have cut key interest rates by 25 basis points, effective October 30.
Central Bank of the UAE (CBUAE) cut the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points, from 4.15% to 3.90%, effective from Thursday (October 30).
This decision was taken following the US Federal Reserve’s announcement on Wednesday to reduce the Interest Rate on Reserve Balances (IORB) by 25 basis points, said a Wam news agency report.
The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.
The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.
The Central Bank of Bahrain (CBB) said it cut the overnight deposit interest rate by 25 basis points from 4.75% to 4.50%, effective October 30.
This decision comes as part of the measures taken by CBB in maintaining monetary and financial stability in the Kingdom of Bahrain in light of global financial market developments, it said. -TradeArabia News Service
