UAE Central Bank raises base rate by 25 basis points to 3.9 percent

Abu Dhabi, Sept 16 (KUNA) -- The Central Bank of the United Arab Emirates (CBUAE) decided on Wednesday to raise the base rate on overnight deposit facilities by 25 basis points from 3.65 percent to 3.9 percent, effective from Thursday.

The central bank stated in a statement that the decision came following the announcement by the US Federal Reserve of a 25 basis point increase in the interest rate on reserve balances at its meeting held today.

It added that it had decided to maintain the rate applied to short-term liquidity borrowing from the central bank through all existing credit facilities at 50 basis points above the base rate. (End) S.K.M. / R.J.