UAE Central Bank hikes base rate

The Central Bank of the United Arab Emirates has decided to raise the overnight deposit rate by 0.25%, bringing it to 3.9% starting September 17. This decision follows the U.S. Federal Reserve's recent interest rate hike of 25 basis points. Additionally, the central bank has maintained the short-term liquidity borrowing rate at 50 basis points above the base rate to keep pace with rising global interest rates and to control inflation. The aim of this move is to manage liquidity levels and regulate domestic interest rates in light of global monetary policy adjustments.