Gulf central banks raised interest rates by 25 basis points on Wednesday after a similar decision by the US Federal Reserve, while the Central Bank of Kuwait bucked the trend and left rates unchanged.
Saudi Arabia and UAE raise interest rates
The Saudi Central Bank raised its repurchase agreement (repo) rate by 25 basis points to 4.50% and its reverse repurchase agreement (reverse repo) rate by 25 basis points to 4.00%, saying the move was consistent with its objective of maintaining monetary stability.
The Central Bank of the UAE decided to raise its base rate on the overnight deposit facility by 25 basis points, from 3.65% to 3.9%, effective Thursday. The Central Bank of Oman and the Central Bank of Bahrain also raised interest rates by 25 basis points.
Qatar raises rates as Kuwait holds steady
The Qatar Central Bank raised its deposit rate by 25 basis points to 4.10%, while also increasing its lending rate to 4.60% and its repo rate to 4.35%.
In a move that differed from the other Gulf decisions, the Central Bank of Kuwait left interest rates unchanged, saying current data reflected the “soundness and strength of monetary and financial stability conditions” in the country.
Fed raises rates to tackle inflation
The US Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75% to 4% as it confronts inflation fueled by rising energy prices. Some Wall Street analysts expect one or two further rate increases in the coming months.
