The Central Bank of the UAE reduced its base rate by 25 basis points to 3.65% on 10 December 2025, the institution confirmed in an official statement. The move represents the third consecutive cut delivered by the CBUAE in the second half of 2025 and brings cumulative monetary easing for the full calendar year to 75 basis points.
The decision follows the US Federal Reserve's own December rate reduction, to which the CBUAE's policy is structurally linked by virtue of the UAE dirham's long-standing peg to the US dollar.
THREE CUTS TOTAL 75 BASIS POINTS IN H2 2025
Three consecutive reductions across the second half of 2025, each of 25 basis points, have together reduced the CBUAE's base rate by a cumulative 75 basis points from the level prevailing at the start of that easing sequence.
The base rate is anchored to the Fed's Interest Rate on Reserve Balances.
The bank has not signalled any predetermined pace or direction for future adjustments.
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