The UAE Central Bank has resolved to keep the base interest rate for the Overnight Deposit Facility at 4.40%, replicating the move of the latest US Federal Reserve decision. Such a move aligns with UAE’s commitment toward monetary stability at the same time following the current US rate patterns since the dirham is pegged to the dollar.
By keeping the interest rates at the same level, the Central Bank of UAE is targeting growth in the economy while offsetting inflationary pressure. This policy ensures continued liquidity in the banking sector and allows businesses and consumers to have a stable borrowing cost. According to experts, this policy will be able to maintain financial confidence in the UAE.
The Central Bank’s decision comes as the US Federal Reserve opted to keep rates steady amid ongoing assessments of inflation and economic performance. With global markets closely monitoring interest rate shifts, the UAE’s move signals confidence in its economic resilience and financial policies.
This would be according to the expectations of the Central Bank on businesses and investors with regard to the current economic crisis. Analysts are rating future rate changes contingent to global economic conditions and inflation trends, based on which respective financial institutions adjust their strategies.
