Gulf central banks raise interest rates after Fed’s supersize increase – The National

Gulf central banks raise interest rates after Fed’s supersize increase – The National

The central banks of the UAE, Saudi Arabia, Bahrain, Kuwait and Qatar raised their benchmark borrowing rates after the US Federal Reserve raised its key interest rate for the fifth time this year to slash surging inflation and restore price stability.

The Fed on Wednesday increased the policy rate by 75 basis points (bps), its third consecutive three-quarters of a percentage point increase.

The latest move by the US central bank came after consumer prices rose by 8.3 per cent in August, exceeding economists' expectations of 8.1 per cent and above the Fed’s 2 per cent target.