The central banks of Bahrain and the UAE have decided to cut their overnight deposit rate by 25 basis points.
The Central Bank of Bahrain (CBB) said it cut the overnight deposit rate from 5.00% to 4.75%, effective 18th September 2025.
This decision comes as part of the measures taken by CBB in maintaining monetary and financial stability in Bahrain in light of global financial market developments, it said.
The move follows US Federal Reserve’s decision to cut its key interest rate by 25 basis points.
The Central Bank of the UAE (CBUAE) said it has decided to cut the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points, from 4.40% to 4.15%, effective from September 18.
This decision was taken following the US Federal Reserve’s announcement to reduce the Interest Rate on Reserve Balances (IORB) by 25 basis points, it said.
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 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.
