Central bank keeps rates steady following Fed decision

The Central Bank of the UAE (CBUAE) kept interest rates steady after the US Federal Reserve also left interest rates unchanged yesterday, CBUAE said in a statement (pdf). The central bank kept its overnight deposit rate at 5.40% and the overnight lending rate at 5.90%, 50 basis points above the base rate.

REMEMBER- The UAE’s overnight deposit rate, or the base rate on overnight deposit facilities, is anchored to the US Federal Reserve’s interest rates as the AED is pegged to the USD.

Saudi Arabia followed suit, too: The Saudi Central Bank (SAMA), which also maintains a currency peg to the USD, left its lending rates unchanged.