On Wednesday, the UAE Central Bank reduced its key interest rate.
In an official announcement, the bank decreased the base rate for the Overnight Deposit Facility (ODF) by 25 basis points, adjusting it from 3.90% to 3.65%.
This decision aligns with the US Federal Reserve’s move to lower its federal funds rate by 25 basis points, setting it between 3.5% and 3.75%.
The UAE mirrors US monetary policy because the dirham is pegged to the US dollar.
