Latest news with #BaseRate
Arabian Business
31-07-2025
- Business
- Arabian Business
UAE central bank follows Fed lead and maintains base rate at 4.4%
The Central Bank of the UAE (CBUAE) will maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 4.4 per cent. This decision was taken following the US Federal Reserve's announcement to keep the Interest Rate on Reserve Balances (IORB) unchanged. The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity 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. Meanwhile, in the US, Federal Reserve Chair Jerome Powell refused to bow down to President Donald Trump's demands for a cut in interest rates. The Fed left its key short-term interest rate unchanged for the fifth time this year, at about 4.3 per cent. Powell also gave no indication of an upcoming rate cut in September, saying: 'We have made no decisions about September,' he said, acknowledging that if the Fed cut its rate too soon, inflation could move higher, and if it cut too late, then the job market could suffer.
Emirates 24/7
31-07-2025
- Business
- Emirates 24/7
CBUAE maintains Base Rate at 4.40%
The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 4.40%. This decision was taken following the US Federal Reserve's announcement today to keep the Interest Rate on Reserve Balances (IORB) unchanged. 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. Follow Emirates 24|7 on Google News.
Economy ME
31-07-2025
- Business
- Economy ME
CBUAE maintains base rate at 4.40 percent in line with Fed decision
The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 4.40 percent. The decision was taken following the U.S. Federal Reserve 's announcement to keep the interest rate on reserve balances unchanged. 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 U.S. 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. In support of its goals, the Fed Committee decided to maintain the target range for the federal funds rate at 4.25-4.5 percent. The last rate cut was in December, and the Fed hiked rates from March 2022 to July 2023 to fight inflation. It noted that although swings in net exports continue to affect economic data, recent indicators suggest that the growth of U.S. economic activity moderated in the first half of the year. However, the unemployment rate remains low, and labor market conditions remain solid. Meanwhile, inflation remains somewhat elevated. Read: UAE banking sector assets surpass $1.29 trillion in April 2025 The Fed seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Fed's next meeting is set for September 16-17. Traders are pricing in a 46 percent probability of a rate cut by September, down from about 65 percent a day ago, according to the CME Group's FedWatch Tool. They are also no longer pricing in two full 25-basis-point cuts by year-end as they were in recent days.
New Straits Times
10-07-2025
- Business
- New Straits Times
Lower OPR brings RM864 annual relief to homeowners
KUALA LUMPUR: A 25-basis-point reduction in the Overnight Policy Rate (OPR) to 2.75 per cent is expected to ease the financial burden on homebuyers with floating-rate mortgages, says the Muslim Real Estate Consultants Association of Malaysia. Its president Idzwan Izuddin Shah Ishak said that local banks' floating interest rates were closely linked to the OPR through the Base Rate (BR) or Standardised Base Rate (SBR). "If the OPR is reduced by 0.25 per cent, the BR or SBR generally follows suit. As a result, the interest charged on loans will also decrease within weeks of Bank Negara Malaysia's announcement," he told Sinar Harian. He said that for a 30-year mortgage of RM500,000, a 0.25 per cent cut could reduce the monthly instalment by around RM72. "At present, the average interest rate for such a loan is about 4 per cent, which translates to a monthly repayment of RM2,387. After the OPR reduction, this could drop to approximately RM2,315 — a monthly saving of RM72 or RM864 a year." According to him, as the BR or SBR decreases in tandem with the OPR, floating interest rates fall, resulting in lower monthly payments. Borrowers might also opt to maintain their current repayments in order to shorten the loan tenure, he added. However, Idzwan said that fixed-rate loans would not see immediate changes, as rates are only adjusted during repricing at maturity. He said that a low-OPR environment could prompt banks to offer more attractive refinancing options. Lower borrowing costs, he added, were expected to stimulate demand over the next six to 12 months, particularly among first-time buyers and upgraders. "The reduction in financing costs will likely encourage more property purchases. BIMB Research has projected that heightened consumer activity could boost GDP by 0.2 per cent, bringing growth to around 4.6 per cent," Idzwan said. He said that house prices were likely to remain stable, with moderate increases anticipated in the affordable housing segment.
Daily Mirror
16-05-2025
- Business
- Daily Mirror
Martin Lewis tells savers the one thing they need to do 'today' to protect money
The Bank of England cut the base rate from 4.5% to 4.2% last week - and savings providers are usually quick to cut the interest rates they have on offer at the same time Money Saving Expert Martin Lewis has issued a stark warning to Brits considering fixed rate savings accounts, urging them to act "today". Following the Bank of England's base rate cut from 4.5% to 4.2% last week, Martin highlighted that savings providers are likely to follow suit and reduce their interest rates swiftly. He advised those who have been hesitant about fixing an interest rate to make their move promptly, as he believes returns are unlikely to improve. Speaking on his Money Podcast on Sunday, Mr Lewis told listeners: "We're going to see easy access rates, both the ones being offered and your existing accounts, coming down. "Fixed rate savings tend to factor in future interest rates, so they're already lower than the easy access interest rates as they've factored in much of the [Bank of England] cuts. But here's the key thing. If you're looking to fix, I would be fixing today." Elaborating on how savings providers manage fixed rate savings accounts, Mr Lewis explained that they offer a set tranche – for instance, £5million at 4.6%. Once that amount is reached, the provider will reassess and potentially adjust the fixed rate based on new market conditions. Mr Lewis pointed out: "So, you may be able to get in now before the rate drops and they reassess based on the new information. "And of course, because it's a fix, your rate is locked in." Fixed rate savings accounts offer savers the chance to lock in an interest rate for a defined period, typically from one to five years, although they generally do not permit withdrawals until the term concludes. Financial expert Mr Lewis advised: "The safest bet is to [fix] today. And also as a general point, analysts are predicting that interest rates are going to come down quite substantially over the next year. "If you're risk-averse to rates going much lower and you don't need access to the money, then the safest thing to do if you've got savings is to lock it away in the highest rate fix you can get right now, which will protect you from interest rates dropping." Furthermore, he warned: "I can't promise anything, we live in such an uncertain world, but the risk-averse thing now is if you've got savings and you want to keep a higher rate, would be to lock them in on a fix." The financial markets anticipate at least two additional cuts to the Bank of England Base Rate before this end of the year, reports the Express. Moneyfactscompare lists the leading fixed rate options currently available. Top one-year fixed rates FirstSave's 1 Year Fixed Rate Bond - 4.5% AER/gross Close Brothers Savings' Fixed Rate Bond - 4.47% AER/gross Cynergy Bank's Fixed Rate Bond - 4.4% AER/gross Top two-year fixed rates GB Bank's 2 Year Fixed Rate Bond - 4.43% AER/gross Secure Trust Bank's 2 Year Fixed Rate Bond ( - 4.42% AER/gross Oxbury Bank's Personal 2 Year Bond Account (Issue 28) - 4.4% AER/gross Top five-year fixed rates Birmingham Bank's 5 Year Fixed Rate Bond (Issue 20) - 4.43% AER/gross Secure Trust Bank's 5 Year Fixed Rate Bond ( - 4.42% AER/gross GB Bank's 5 Year Fixed Rate Bond - 4.4% AER/gross.
