News Brief · United Arab Emirates · Published 23 Aug 2026, 12:10
UAE central bank keeps its base rate at 3.65%
The decision maintained borrowing conditions in a dollar-pegged economy and illustrates how US monetary policy is transmitted to the Gulf.
The Central Bank of the UAE maintained the Base Rate for its Overnight Deposit Facility at 3.65% on 29 July 2026.
What happened
The central bank left its main base rate unchanged following the US Federal Reserve decision, preserving the monetary-policy setting linked to the dirham's dollar peg.
Why it matters
The base rate influences saving and borrowing costs in the UAE, affecting credit, property demand, investment and the exchange-rate framework.
Economic context
A currency peg provides stability for trade and finance but limits independent interest-rate policy when domestic conditions differ from those in the United States.
Key data
- decision
- unchanged
- base_rate
- 3.65%
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