FX.co ★ UAE Lowers Interest Rate, Follows Fed

In December 2025, the Central Bank of the United Arab Emirates reduced its overnight deposit facility base rate by 25 basis points, bringing it down to 3.65%. This move mirrors the recent rate cut by the U.S. Federal Reserve. The base rate of the UAE Central Bank, which is linked to the Federal Reserve's reserve rate, plays a crucial role in shaping the monetary policy of the UAE and serves as a benchmark for overnight market interest rates in the nation.