Saudi ArabiaUAEBahrain

UAE, Saudi, Bahrain Central Banks raise interest rates by 75bps

The Central Bank of the UAE (CBUAE) has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 75 basis points – from 3.15% to 3.90%, effective from Thursday, 3 November 2022.

This decision was taken following the US Federal Reserve Board’s announcement on 2 November 2022 to increase the Interest on Reserve Balances (IORB) by 75 basis points. The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate.

Consistent with the goal of the Saudi Central Bank to maintain monetary and financial stability, the Saudi Central Bank decided to raise the rate of interest rates by 75 basis points to 4.5% and to raise the rate of “reverse repo” agreements by 75 basis points to 4.00%.

Central Bank of Bahrain (CBB) has decided to raise its key policy interest rate. CBB’s key policy interest rate on the one-week deposit facility is raised from 4.00% to 4.75%. The CBB has also decided to raise the overnight deposit rate from 3.75% to 4.50%, the four-week deposit rate from 4.75% to 5.50% and the lending rates from 5.25% to 6.00%.

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Khaleej TimesBahrain News Agency
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