The Central Bank of the UAE has decided to keep its interest rate, the "Base Rate" applicable to the Overnight Deposit Facility, at 3.9%.

The decision follows the US Federal Reserve's announcement that it was keeping the interest rate on reserve balances unchanged at its meeting held today, Wednesday.

The central bank also decided to keep the rate applicable to borrowing short-term liquidity from the central bank through all existing standing credit facilities at 50 basis points above the Base Rate.

The Base Rate, which is anchored to the Federal Reserve's interest rate on reserve balances, signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the country.