CBUAE maintains base rate at 4.40 percent in line with Fed decision
U.S. Federal Reserve
's announcement to keep the interest rate on reserve balances 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.
The base rate, which is anchored to the U.S. 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.
In support of its goals, the Fed Committee decided to maintain the target range for the federal funds rate at 4.25-4.5 percent. The last rate cut was in December, and the Fed hiked rates from March 2022 to July 2023 to fight inflation.
It noted that although swings in net exports continue to affect economic data, recent indicators suggest that the growth of U.S. economic activity moderated in the first half of the year. However, the unemployment rate remains low, and labor market conditions remain solid. Meanwhile, inflation remains somewhat elevated.
Read: UAE banking sector assets surpass $1.29 trillion in April 2025
The Fed seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated.
The Fed's next meeting is set for September 16-17. Traders are pricing in a 46 percent probability of a rate cut by September, down from about 65 percent a day ago, according to the CME Group's FedWatch Tool. They are also no longer pricing in two full 25-basis-point cuts by year-end as they were in recent days.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
6 minutes ago
- Khaleej Times
The Family Office concludes exclusive Investment Forum in Dubai, showcasing Institutional Wealth strategies for Investors
The Family Office, a leading provider of wealth management and advisory services in the GCC, recently hosted an exclusive investment event in Dubai, bringing together select investors and global experts for high-level discussions on the future of private wealth management. Hosted at the Four Seasons Dubai, the forum offered a deep dive into the evolving dynamics of global markets and how institutional investment principles can help individuals and families to preserve and grow their wealth across generations. Key themes included the shift towards protectionist policies, the rising importance of private markets, and the role of disciplined asset allocation and long-term thinking in navigating today's complex environment. Serving hundreds of clients across the GCC, The Family Office specializes in helping individuals and families achieve clarity around their financial goals through personalized, long-term investment strategies. The firm's approach combines traditional advisory support with cutting-edge digital tools to create a seamless wealth management experience. 'Private investors today face the same challenges as institutions : volatility, uncertainty, and complexity,' said Rayan Sleem, Senior Executive Officer at The Family Office Co. B.S.C (c) (DIFC Branch). 'Our role is to help them navigate this environment with clarity, structure, and access to high-quality private market opportunities.' The event reinforced The Family Office's core value proposition: Bringing institutional-grade investment discipline to individual investors Offering access to private equity, private credit, and real estate opportunities Providing structured, goal-based planning through the company's proprietary digital platforms With more than 20 years of experience and a proven track record across market cycles, The Family Office continues to help clients plan with confidence, build resilient portfolios, and preserve family wealth for the long term. The firm operates from regional offices in Riyadh, Dubai, Bahrain, and Kuwait, with an international presence in Zurich, Hong Kong, and New York, ensuring clients benefit from global reach and local insight. Disclaimer Certain services and products offered by The Family Office may not be available to investors in certain jurisdictions where they reside. Investors are responsible for ensuring compliance with local laws and regulations before accessing our products or services. The Family Office Company B.S.C. (c) is a Category 1 Investment Firm regulated by the Central Bank of Bahrain. C.R. No. 53871 dated 21/6/2004. Paid Up Capital: US$10,000,000. The Family Office Company B.S.C. (c) only offers products and services to 'accredited investors' as defined by the Central Bank of Bahrain. The Family Office International Investment is a joint stock closed company owned by one person. Paid-up capital SR20 million. CR No. 101060698, Unified National Number 7007701696. Licensed by the Capital Market Authority (no. 17-182-30) to carry out arranging, advisory and managing investments and operating funds, with respect to securities. The Family Office Company B.S.C. (c) (DIFC Branch) is a recognized company in the Dubai International Financial Centre (DIFC) under registration number 6567 and regulated by the Dubai Financial Services Authority (DFSA) as a Category 4 licensee to carry out Arranging and Advising Services. The Family Office Company B.S.C. (c) (DIFC Branch) is not permitted to deal with Retail Clients (as defined in DFSA's Conduct of Business Module). The Family Office Investment Advisory Company (Kuwait) K.S.C. (c), incorporated in 2024, is regulated by the Capital Markets Authority, State of Kuwait and authorized to conduct Investment Advisory and Subscription Agent (license no. AP/2024/0009). Paid-up capital KWD 1,000,000, CR no. 511443.
Zawya
6 minutes ago
- Zawya
Saudi Arabia issues new regulations for food laboratory operations
RIYADH — The Ministry of Municipalities and Housing has introduced new regulatory requirements for food laboratories as part of its efforts to improve the urban environment, enhance quality of life, boost compliance, and support the investment climate while ensuring the highest standards of food safety and quality. In a statement on Sunday, the ministry said the new rules apply to laboratories that conduct food testing and measurements under defined standard conditions, whether operating independently or as part of a conformity assessment body. Government laboratories, such as those run by the Saudi Standards, Metrology, and Quality Organization, are exempt. The regulations set out several spatial and technical requirements, including operating within urban boundaries, avoiding environmental or visual pollution, providing at least one parking space for every 25 square meters of total site area for standalone facilities, and maintaining a minimum laboratory space of 100 square meters, whether inside an existing building or at an independent site. Additional requirements address building facades and overall appearance, notably prohibiting visible electrical wiring or external air-conditioning units on building facades or rooftops, in line with approved safety and quality standards. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Gulf Business
6 minutes ago
- Gulf Business
IHC, RIQ form 10-year alliance, positions Abu Dhabi as key reinsurance hub
Image: Supplied International Holding Company ( RIQ, which was launched earlier this year in Abu Dhabi by IHC in partnership with BlackRock and Lunate, will provide a full suite of reinsurance solutions to IHC and its group companies. The platform is designed to offer capital-efficient coverage for complex specialty and property and casualty (P&C) risks using AI-augmented underwriting. The partnership aims to enhance the resilience and operational agility of IHC's companies and aligns with Abu Dhabi's goal to become a global hub for reinsurance and financial innovation. RIQ to obtain formal authorisation from ADGM as a reinsurer RIQ is currently in the process of obtaining formal authorisation as a reinsurer from the Financial Services Regulatory Authority (FSRA) of ADGM. The reinsurance transaction with IHC is subject to regulatory clearance. Syed Basar Shueb, CEO of IHC, said the partnership reflects the company's belief in 'the transformative power of intelligent capital and data-driven risk transfer.' He added that the collaboration 'is a strategic investment in the future of resilient infrastructure and industrial agility.' Mark Wilson, CEO of RIQ, commented that the partnership is a 'defining step in our mission to reshape global reinsurance from Abu Dhabi outward.' RIQ has over $1bn in equity commitments from IHC and its partners and aims to write $10bn per year in reinsurance premiums. Read:
