UAE Keeps Key Interest Rate Unchanged in First Decision of 2026

By Faizal

29 Jan 2026

UAE Keeps Key Interest Rate Unchanged in First Decision of 2026

Dubai: The Central Bank of the UAE (CBUAE) has kept its key interest rate unchanged, maintaining the Base Rate applicable to the Overnight Deposit Facility (ODF) at 3.65%.

The decision, announced late Wednesday, follows the US Federal Reserve’s move to leave interest rates unchanged, reflecting the UAE’s monetary policy alignment with the US.

The central bank also said it will continue to apply an interest rate 50 basis points above the Base Rate on borrowing short-term liquidity from the CBUAE across all standing credit facilities.

The Base Rate, which is anchored to the US Federal Reserve’s Interest on Reserve Balances (IORB), signals the overall stance of monetary policy and acts as a floor for overnight money market interest rates in the UAE.

This marks the UAE’s first interest rate decision of 2026.

Written by

Faizal

Faizal is an experienced content creator and writer with a strong focus on business trends, economic developments, and emerging opportunities across the Gulf region. His work reflects a keen understanding of evolving markets, industry dynamics, and the factors shaping the region’s business landscape. With a research-driven approach, Faizal transforms complex market developments into clear, informative, and actionable insights for professionals, entrepreneurs, and business leaders. His content aims to provide valuable perspectives on key economic trends and developments influencing businesses across the Gulf.