Gulf banks waste no time raising rates in response to US Fed

Gulf banks waste no time raising rates in response to US Fed

Several Gulf central banks raised their policy rates today after the US Federal Reserve expectedly hiked its rates again. 

The US Federal Reserve raised its rate 0.75% today. The Central Bank of the United Arab Emirates raised its overnight deposit rate 0.75% in turn, effective starting tomorrow, the official Emirates News Agency reported. This rate applies for the UAE Central Bank’s loans to other banks. 

The Qatar Central Bank raised its deposit and repo rates 0.75% and its lending rate 0.5%, the bank said in a press release. The deposit rate is the rate the bank pays interest to customers, while the repo rate is the rate on central bank purchases of securities — such as bonds — from commercial banks. The lending rate is the rate for loans to other banks.