5 Gulf central banks announced raising interest rates in line with the US Federal Reserve’s decision.
Today, Wednesday, the US Federal Reserve approved raising the interest rate by 75 points, in line with market expectations, at the highest pace in 28 years, to raise interest rates to a range between 1.50% and 1.75%.
And the Saudi Central Bank raised the rate of repurchase agreements “repo” by 0.5% from 1.75% to 2.25%
The Saudi Central Bank stated that the decision to raise interest rates comes in line with its goal of maintaining monetary and financial stability, and in light of local and global developments.
The Saudi Central Bank raised the rate of reverse repurchase agreements by 0.5% from 1.25 to 1.75%.
Kuwait
Meanwhile, the Central Bank of Kuwait decided to raise the discount rate by a quarter of a percentage point to 2.25%.
The Central Bank of Kuwait stated that it was decided to make an adjustment in varying rates in the monetary market intervention rates that are currently applied to all periods of the interest rate structure, and this includes repurchase operations (repo), bonds and securitization of the Central Bank of Kuwait, the system for accepting time deposits, and direct intervention tools, in addition to to public debt instruments.
UAE
The Central Bank of the UAE also decided to raise the basic interest rate by 75 basis points.
The UAE Central decided to keep the rate that applies to borrowing short-term liquidity from the Central Bank through all existing credit facilities at 50 basis points above the base rate.
the two seas
Meanwhile, the Central Bank of Bahrain approved the Fed’s move to raise the deposit rate for overnight deposits by 75 basis points to 2.25%.
The Bank of Bahrain said in a statement: “The interest rate on overnight deposits was raised from 1.50% to 2.25%, and the interest rate on four-week deposits was raised from 2.50% to 3.25%. This is in addition to raising the interest rate imposed by the Central Bank on sector banks. Retail against lending facilities from 3.00% to 3.75%.
The Central Bank stated that it is following developments in the international and local market, in order to take any necessary additional measures in order to maintain monetary and financial stability in the Kingdom.
Diameter
Qatar Central Bank approved raising the bank’s deposit rate (QCBDR) by 75 basis points to 2.25%, while raising the bank’s lending rate (QCBLR) by 50 basis points to 3.25%.
The Central Bank of Qatar indicated that the repurchase rate “repo” was raised by 75 basis points, to become 2.50%.
