UAE central bank holds base rate at 3.9% after US Fed keeps rates unchanged
The Central Bank of the UAE kept its base rate at 3.9% after the US Federal Reserve held its benchmark rate. Qatar and Bahrain also held rates.
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The story, neutrally told
Mixed · 2The Central Bank of the UAE (CBUAE) announced late on Wednesday 28 October that it was keeping the base rate on overnight deposit facilities at 3.9%. Gulf NewsN “announced late Wednesday it has decided to keep the base rate on overnight deposit facilities at 3.9%” Read at Gulf News ↗ Arab NewsRC “The Central Bank of the UAE kept its base rate on the overnight deposit facility at 3.9 percent.” Read at Arab News ↗ Mixed · 2It also kept the rate for borrowing short-term liquidity through all standing credit facilities at 50 basis points above the base rate. Gulf NewsN “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” Read at Gulf News ↗ Arab NewsRC “The central bank also maintained the rate on short-term liquidity borrowing through all existing credit facilities at 50 basis points above the base rate.” Read at Arab News ↗ Mixed · 2The decision followed the US Federal Reserve's move to leave interest rates unchanged; Gulf News adds this came despite persistently high inflation and a spike in energy prices in the US. Gulf NewsN “following the US Federal Reserve's decision to leave interest rates unchanged despite persistently high inflation and a spike in energy prices” Read at Gulf News ↗ Arab NewsRC “It said the decision followed the Fed's announcement that it was holding the interest rate on reserve balances unchanged.” Read at Arab News ↗
Right · 1Arab News reports that the Fed's rate-setting committee voted 10-2 to keep its benchmark in the 3.75 to 4 percent range, and that it described economic activity as expanding at a strong pace while saying uncertainty remained elevated, partly due to geopolitical developments. Arab NewsRC “The Fed’s rate-setting committee voted 10-2 to keep its benchmark rate in the 3.75 to 4 percent range.”“However, uncertainty remained elevated, partly due to geopolitical developments, while the unemployment rate was little changed.” Read at Arab News ↗ Centre · 1The UAE base rate is anchored to the Fed's interest rate on reserve balances (IORB), signals the general stance of monetary policy and acts as an effective floor for overnight money market rates in the UAE. Gulf NewsN “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.” Read at Gulf News ↗ Right · 1Arab News says Gulf central banks tend to move in step with Washington because most regional currencies are pegged to the US dollar. Arab NewsRC “Gulf central banks tend to move in step with Washington because most regional currencies are pegged to the US dollar.” Read at Arab News ↗
Right · 1Elsewhere in the Gulf, Qatar Central Bank kept its deposit rate at 4.10%, lending rate at 4.60% and repo rate at 4.35%, and the Central Bank of Bahrain held its overnight deposit rate at 4.50%; the central banks of Saudi Arabia, Kuwait and Oman had not yet announced decisions. Arab NewsRC “the QCB Deposit Rate remains at 4.10 percent, the QCB Lending Rate at 4.60 percent and the QCB Repo Rate at 4.35 percent.”“The Central Bank of Bahrain announced it was maintaining the overnight deposit interest rate at 4.50 percent.”“The central banks of Saudi Arabia, Kuwait and Oman are yet to announce any new rate decisions.” Read at Arab News ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left0 outlets
No left outlet in our sources has covered this story yet.
Centre1 outlet
- Framing
- Gulf News gives a short, UAE-focused report that the CBUAE mirrored the Fed, leading with the national decision.
- Emphasis
- The UAE rate, the standing-facility spread and how the base rate is anchored to the Fed's IORB; notes US inflation and energy prices.
- Leaves out or plays down
- Does not give the Fed vote, the Fed's target range or other Gulf central banks' decisions.
- For example
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“despite persistently high inflation and a spike in energy prices in the world's largest economy” — Gulf News
Right1 outlet
- Framing
- Arab News frames it as a regional story: GCC central banks holding rates after the Fed.
- Emphasis
- The Fed's 10-2 vote and statement, the dollar-peg explanation, and Qatar and Bahrain decisions alongside the UAE.
- Leaves out or plays down
- Does not mention the US inflation or energy price pressures that Gulf News cites.
- For example
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“Gulf central banks tend to move in step with Washington because most regional currencies are pegged to the US dollar.” — Arab News
What every side reports
- The CBUAE kept its base rate on overnight deposits at 3.9%.
- The decision followed the Fed's decision to leave rates unchanged.
- Short-term liquidity borrowing stays 50 basis points above the base rate.
Central Bank of the UAE organisation
Says it held the base rate at 3.9% following the Fed's decision to keep the interest rate on reserve balances unchanged.
“It said the decision followed the Fed's announcement that it was holding the interest rate on reserve balances unchanged.” — Arab News
Federal Reserve organisation
The Fed's committee kept its target range at 3-3/4 to 4 percent, citing strong economic activity and elevated uncertainty.
“The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent” — Arab News
Left0 articles
No coverage yet.
Centre1 article
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UAE keeps key interest rate unchanged in October, mirroring US Fed move
Neutral Brief factual report of the UAE decision as following the Fed, with context on the base rate's anchor.
Right1 article
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GCC central banks hold rates after Fed keeps benchmark unchanged
Neutral Regional roundup tying Gulf rate holds to the Fed decision and the dollar pegs.
- 28 Oct 18:05 First Gulf NewsN UAE keeps key interest rate unchanged in October, mirroring US Fed move
- 29 Oct 08:52 +14h 47m Arab NewsRC GCC central banks hold rates after Fed keeps benchmark unchanged
Times are when each article was published, or when we first saw it if the outlet gave no time.
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