The Central Bank of the UAE (CBUAE) has announced that interest rates will be increased by half a per cent.
The change has already come into effect.
The decision was made due to the US Federal Reserve Board’s announcement to increase the Interest on Reserve Balances (IORB) by 50 basis points.
The rate will be maintained for borrowing short-term liquidity from the CBUAE through all credit facilities at 50 basis points above the base rate.
The base rate, which is linked to the US Federal Reserve’s IORB, provides the effective interest rate floor for overnight money market rates as well as the monetary policy for the CBUAE.