In Icelandic it translates to mean 'town'. However it has often been used in slang as an abriviation of baby or babe. In Danish it does not mean anything (just saying)
Ég bý í þessum bæ - Which translates to- I live in this town.
Have I introduced you, Mark, to Katie, my new bae?
Have I introduced you, Mark, to Katie, my new bae?
by OxGradMatt January 07, 2015