Wall Street equities appeared to be on track for further rises on Thursday, as investors applauded Meta’s profits but avoided Microsoft, while the dollar held firm versus most other currencies after the Federal Reserve left interest rates unchanged.
The Central Bank of the UAE (CBUAE) has decided to keep the base rate for the Overnight Deposit Facility (ODF) at 4.40%. This decision came after the US Federal Reserve announced that the interest rate on reserve balances (IORB) would remain unchanged.
The CBUAE has also decided to keep the interest rate for borrowing short-term liquidity from the CBUAE at 50 basis points over the base rate for all standing credit facilities.
The Base Rate, which is tied to the US Federal Reserve’s IORB, signals the overall monetary policy stance and serves as an effective floor for overnight money market interest rates in the UAE. The yen was the exception, rising across the board as expectations grew for the Bank of Japan to continue raising interest rates while other central banks reduced.
On Thursday, the European Central Bank decreased interest rates as predicted and underlined that Eurozone inflation is getting under control despite concerns about global trade, leaving the euro a little weaker.
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