‎GCC central banks follow US Fed rate hike

‎GCC central banks follow US Fed rate hike

The central banks of Saudi Arabia, the UAE, Kuwait, Qatar and Bahrain hiked their benchmark interest rates after the US Federal Reserve lifted its key rate by 75 basis points (bps), the most since 1994.

The Saudi Central Bank (SAMA) lifted its reverse repo rate by 75 bps to 175 bps from 125 bps. It also lifted its repo rate to 225 bps (2.25%) from 175 bps.

The Central Bank of the UAE (CBUAE) also increased its base rate for the overnight deposit facility (ODF) by 75 bps, effective from today, June 16.

The CBUAE maintained the rate applicable to borrowing short-term liquidity from the regulator through all standing credit facilities at 50 bps above the base rate.

The Central Bank of Kuwait (CBK) also hikes its discount rate by 25 percentage point to 2.25% from 2%, effective from today.

Qatar Central Bank (QCB) raised its repo rate by 75 bps to 2.50%. It also increased its deposit rate by 75 bps to 2.25% and the lending rate by 50 bps to 3.25%.

The Central Bank of Bahrain (CBB) increased its key policy interest rate on the one-week deposit facility by 75 bps to 2.50% from 1.75%. It also hiked the overnight deposit rate to 2.25%