GCC central banks raise interest rates after US Federal Reserve moves to stem inflation – The National

GCC central banks raise interest rates after US Federal Reserve moves to stem inflation – The National

The central banks of the UAE, Saudi Arabia, Bahrain, Kuwait and Qatar increased their benchmark borrowing rates after the US Federal Reserve raised its key interest rate to control spiralling inflation and restore “price stability”.

The Fed raised the policy rate by a larger-than-expected three-quarters of a percentage point, its third interest rate increase in three months and the biggest since 1994, and signalled that more rate increases are coming.

The move to stem rising US consumer prices comes as global financial markets wobble amid rising energy prices and high inflation.