The Central Bank of the UAE (CBUAE), the country’s monetary authority, raised its overnight deposit facility base rate by 25 basis points to 3.9% in September 2026, matching the Federal Reserve’s decision. The UAE keeps monetary policy closely aligned with the Fed because the dirham is pegged to the U.S. dollar. The Fed had announced a 25-basis-point increase in the interest rate on reserve balances, taking it to a 3.75%-4% range, while most FOMC (Federal Open Market Committee) members projected another increase this year. The CBUAE kept borrowing through all standing credit facilities priced at 50 basis points above its Base Rate.