UAE Interest Rate Stabalizing The Inflation Admist Global Economic signals 2025

UAE Interest Rate Stabilizing the Inflation UAE interest rate Stabilizing the Inflation has become a hot topic in financial circles this week, as the UAE Central Bank confirmed that it will maintain its Base Rate at 4.40 percent, following the recent US Fed decision to keep its benchmark rate unchanged at 4.25%–4.50%. This move ensures continuity in policy and sends a clear message of stability to markets, borrowers, and savers across the Emirates. Why did the UAE Central Bank keep rates steady? The UAE Central Bank’s decision comes on the heels of the U.S. Federal Reserve’s decision not to raise or cut its key rate. Since the UAE dirham is pegged to the U.S. dollar, the UAE Central Bank typically aligns its UAE interest rate directly with the Fed’s Interest Rate on Reserve Balances (IORB). When the Fed paused, so did the UAE Central Bank. Specifically, the CBUAE has opted to maintain the Overnight Deposit Facility Base Rate at 4.40% and keeps the rate for short‑term liquidity borrowing