Money & BusinessGCC Countries
Gulf Central Banks raise rates as Fed hikes by 50bps
Gulf central banks hiked their main interest rates on Wednesday as the US Federal Reserve raised its target policy rate by 50 basis points in the face of inflation at highs not seen in decades.
All Gulf countries have their currencies pegged to the US dollar, except Kuwait, which pegs the Kuwaiti dinar to a basket of currencies that includes the dollar.
The central banks of Saudi Arabia, the United Arab Emirates, Qatar and Bahrain raised their key rates by 50 bps. The Central Bank of Kuwait said it increased its discount rate by 25 basis points (bps) to 2 percent, in a move less hawkish than the Fed’s.
