UAE Central Bank Cuts Interest Rate: How This Affects Borrowers

UAE Central Bank cuts the base rate for the Overnight Deposit Facility (ODF) by 25 basis points, lowering it from 4.15 percent to 3.90 percent, effective October 30, 2025. This marks the second interest rate cut by the central bank in 2025, following a reduction from 4.40 percent to 4.15 percent in September after the US Federal Reserve lowered its policy rate.​ Alignment with the US Federal Reserve The latest decision was made in response to the US Federal Reserve’s announcement to decrease its Interest Rate on Reserve Balances