The big picture:
The Central Bank of the UAE (CBUAE) has reduced its overnight deposit base rate by 25 basis points, moving from 4.15% to 3.90% effective October 30, 2025. The adjustment brings borrowing costs to their lowest level in three years.
What’s happening:
The rate cut comes amid easing global inflation pressures and signals the UAE’s intent to stimulate domestic consumption and investment while staying aligned with international monetary trends.
Who’s involved:
- Central Bank of the UAE (CBUAE)
- Banks and financial institutions
- Consumers and mortgage borrowers expected to benefit from lower financing costs
By the numbers:
- Rate change: -25 basis points
- New rate: 3.90%
- Previous rate: 4.15%
- Context: Lowest rate since 2022
Why it matters:
Lower interest rates can boost spending and borrowing, energize the housing and investment markets, and reflect the UAE’s monetary alignment with global economic easing cycles.
