The Central Bank of the United Arab Emirates decided to reduce the “base rate” on overnight deposit facilities by 25 basis points, from 4.90% to 4.65%, effective Friday, November 8.
This decision comes after the announcement by the Federal Reserve that they will reduce the interest rate on reserve balances by 25 basis points at the meeting held today.
The Central Bank also determined the appropriate rate for short-term borrowing from the Central Bank through existing credit facilities at 50 basis points above the base rate.
The base rate, which is linked to the interest rate on reserve balances agreed by the US Federal Reserve, determines the general stance of monetary policy, and also provides a minimum effective interest rate for overnight money market rates in the a country
2024-11-08 06:41:00
#Central #Bank #lowers #base #rate #basis #points
