CBUAE raises Base Rate by 25bp to 3.9% from 17 September
The Central Bank of the UAE raised the Base Rate on the Overnight Deposit Facility by 25 basis points to 3.9%, effective 17 September 2026, after the US Fed lifted IORB.
The Central Bank of the UAE said on 16 September 2026 that it has decided to raise the Base Rate applicable to the Overnight Deposit Facility by 25 basis points, from 3.65% to 3.9%, effective from Thursday, 17 September 2026.
The decision followed the US Federal Reserve’s announcement the same day to raise the Interest Rate on Reserve Balances by 25 basis points. The Base Rate is anchored to the US Federal Reserve’s IORB and signals the general stance of monetary policy, providing an effective floor for overnight money market rates in the UAE.
The central bank also said it will maintain the interest rate on short-term liquidity borrowing from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.
According to a Central Bank of the UAE statement dated 16 September 2026 on raising the Base Rate by 25 basis points.
Sources
- CBUAE — Base Rate +25bp to 3.9% centralbank.ae