The UAE Central Bank announced on Wednesday its decision to keep the base rate for the overnight deposit facility steady at 5.40 per cent. This move aligns with the US Federal Reserve's decision on the same day to hold interest rates constant. The UAE's monetary policy mirrors that of the US due to the dirham's peg to the dollar. Following a two-day Federal Open Market Committee meeting, the Fed confirmed that the target range for the federal funds rate remains at 5.25 to 5.5 per cent. The Fed's statement highlighted 'modest further progress' towards achieving a 2 per cent inflation target. Data from the Labor Department showed that the annual consumer price index stood at 3.3 per cent in May, a slight decrease of 0.1 percentage point from April, marginally under market expectations.