New Delhi [India], June 19 (ANI): The Central Bank of the UAE (CBUAE) has decided to keep its key interest rate unchanged, following a similar move by the United States Federal Reserve.

On Wednesday, in a post on social media platform X, the bank stated, 'The #CentralBankUAE has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 4.40 per cent.'

This means that the base rate for overnight deposits will remain at 4.40 per cent. The decision comes after the US Federal Reserve announced it would not change its Interest Rate on Reserve Balances (IORB).

According to an article published in Gulf News on Wednesday, the apex bank said in a statement, '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.'

Before the announcement, experts had widely predicted that the CBUAE would hold rates steady, as attention now shifts to how many interest rate cuts may happen later this year.

The US Federal Reserve on Thursday morning (IST) decided to keep its benchmark interest rates unchanged at 4.25-4.50 per cent, maintaining its cautious stance amid evolving economic conditions.

Federal Reserve Chairman Jerome Powell said the decision to hold rates steady was taken to support the Fed's dual goals of maximum employment and stable inflation.

'In support of our goals, today the Federal Open Market Committee decided to leave our policy interest rate unchanged. We believe that the current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments,' Powell said while announcing the decision.

The Federal Open Market Committee (FOMC), in its statement, noted that it would continue to assess incoming data, the economic outlook, and the balance of risks before making any further changes to interest rates. (ANI)