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 remained stable versus most other currencies after the Federal Reserve kept 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 followed the US Federal Reserve’s statement 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 above the Base Rate for all existing credit facilities.
The Base Rate, which is linked to the US Federal Reserve’s IORB, signals the overall stance of monetary policy and serves as an effective floor for overnight money market interest rates in the UAE. The yen was the exception, strengthening across the board as expectations grow that the Bank of Japan would continue to raise interest rates while other central banks reduce.
The European Central Bank dropped interest rates as predicted on Thursday and underlined that Eurozone inflation is increasingly under control, despite concerns about global trade, leaving the euro a little weaker on the day.
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