GCC central banks raise interest rates after US Federal Reserve move to curb inflation – The National

GCC central banks raise interest rates after US Federal Reserve move to curb inflation – The National

The central banks of the UAE, Saudi Arabia, Bahrain, Kuwait and Qatar increased their benchmark interest rates following the US Federal Reserve's move to raise its key rate by half a percentage point, its most aggressive decision in 22 years, as it vies to curb soaring inflation in the world's largest economy.

The Fed's move is its second in less than three months as the job market overheats and inflation reached 8.5 per cent in March, the highest level since 1981.

Most central banks in the six-member economic bloc of GCC follow the Fed's moves on key interest rates due to their currency peg to the US dollar, with the exception of Kuwait, whose dinar is linked to a basket of currencies.