Qatar Central Bank raises Repo Rate by 1.25% – The Peninsula

Qatar Central Bank raises Repo Rate by 1.25% – The Peninsula

Qatar Central Bank (QCB) announced yesterday that it has raised the Repo Rate (QCB Repo Rate) by 25 basis points to 1.25 percent, starting from Thursday.

QCB said in a statement that the decision of raising the repo rate was based on the “evolving domestic and international macroeconomic developments.”

The repo rate, which is also known as the Repo, is the interest rate for one night or a very short period of time for the process of buying and selling assets, such as government bonds from the central bank, where dealers purchase government bonds for a certain period and then sell them to investors for either a short period or one night, after which they purchase them on the following day.

QCB also decided to maintain the QCB deposit rate (QCBDR) at its current level of 1 percent and maintain the QCB lending rate (QCBLR) at its current level by 2.50 percent.

It is noteworthy that the US Federal Reserve System (the US central bank) raised the federal funds interest rates by a quarter of a percentage point to reach 0.5 percent, which is the first time it increased since 2018.

The US Federal Reverse attributed its decision to raise the interest rate to the