The Central Bank of Bahrain (CBB) has announced its decision to maintain the overnight deposit interest rate unchanged at 4.25%.

This decision comes as part of the review conducted by the CBB to maintain monetary and financial stability in the kingdom in light of global financial market developments.

The UAE's central bank too has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 3.65%.

The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.

This decision from Central Bank of the UAE (CBUAE) comes following the US Federal Reserve’s announcement today to keep the Interest Rate on Reserve Balances (IORB) unchanged.

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.