GCC central banks raise interest rates in line with US Fed’s decision
Gulf central banks on Wednesday raised their main interest rates by a quarter percentage point in lockstep with the US Federal Reserve as it began a monetary tightening cycle in a newly aggressive stance against rising inflation.
The Saudi Central Bank, or SAMA, increased both its repo and reverse repo rates by 25 basis points (bps) each to 1.25 percent and 0.75 percent, respectively.
The Central Bank of the UAE raised its base rate, which is on its overnight deposit facility, by 25 bps to 0.4 percent. CBUAE maintained the rate on borrowing short-term liquidity from it through all standing credit facilities at 50 bps above the base rate.
The central banks of Kuwait and Bahrain also raised their key interest rates by 25 bps. Qatar and Oman are widely expected to follow.
