UAE Central Bank raises Base Rate to 3.90% amid credit growth

The Central Bank of the UAE (CBUAE) has raised its Base Rate by 25 basis points to 3.90%, effective September 17, 2026. This adjustment follows a similar move by the US Federal Reserve and is driven by the dirham’s peg to the US dollar. The rate increase aims to align with the Fed’s monetary policy stance and provides a floor for overnight money-market rates in the UAE.

In a separate development regarding the nation's financial sector, UAE bank credit saw significant growth in August, increasing by Dh72.4 billion ($19.7 billion) to reach a total of Dh2.87 trillion. This 2.6% monthly rise was primarily driven by domestic credit, with personal borrowing leading the expansion through a 5.6% jump. Corporate lending and government borrowing also saw increases during the same period.