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UAE maintains benchmark interest rate at 3.65% following US Fed decision
The UAE follows US monetary policy as the UAE dirham is pegged to the US dollar
- PUBLISHED: Wed 17 Jun 2026, 10:16 PM
The Central Bank of the UAE on Wednesday held its benchmark interest rate at 3.65 per cent. In a statement, the bank said it was maintaining the base rate applicable to the overnight deposit facility at 3.65 per cent.
The decision follows a similar move by the US Federal Reserve, which continued to hold its key rates. The UAE follows US monetary policy as the UAE dirham is pegged to the US dollar.
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"This decision was taken following the US Federal Reserve’s announcement today to keep the Interest Rate on Reserve Balances (IORB) unchanged," the central bank's statement said.
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The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.
Earlier on Wednesday, the US Federal Reserve held its rate steady and raised its year-end inflation expectations, with price increases currently at a three-year-high and not expected to return to the central bank's two-percent target until 2028.
The Fed raised its inflation expectation for the Personal Consumption Expenditures price index to 3.6 percent by the end of 2026, up from 2.7 percent in March, according to its Summary of Economic Projections.
Yasmin Hussein is an Assistant Digital Editor who believes that every news story carries a human element. Her motto is 'get it first, but first get it right'.