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Wednesday, July 29, 2026

UAE maintains interest rate following US Federal Reserve decision

تم إعداد هذا المنشور من قبل فيجاي فاليتشا

UAE maintains interest rate following US...

Vijay Valecha, Wed, July 29, 2026 Khaleej Times

June's economic data provided support for the Federal Reserve to keep rates unchanged, expert says

UAE consumers are set to enjoy stable borrowing rates, as the Central Bank of the UAE left its benchmark rate unchanged on Wednesday.

In a statement, the apex bank said it has decided to maintain the base rate applicable to the overnight deposit facility at 3.65 per cent.

The decision was made after the US Federal Reserve decided to continue to hold its federal funds range at 3.5 per cent to 3.75 per cent. The UAE follows US monetary policy as the UAE dirham is pegged to the US dollar.

In Washington, the Federal Open Market Committee decided to hold rates by a 9 – 3 vote. The FOMC noted that economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. “Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little,” the FOMC said.

Vijay Valecha, Chief Investment Officer, Century Financial, stressed that the current economic data have been more favourable than what the Fed had in front of them in June. “Warsh has repeatedly stressed over the past two months that the Fed must restore price stability and convince markets it has not accepted permanently higher inflation. However, he has not explained why current interest rates are sufficient to achieve that. Fed officials favouring another rate hike remain vocal, while some who currently support holding rates have indicated they could back tighter policy later this year,” he added.

Source

Khaleej Times