Gulf central banks cut rates after unexpected Fed move to offset coronavirus impact – The National

Gulf central banks cut rates after unexpected Fed move to offset coronavirus impact – The National

UAE, Saudi Arabia and Bahrain regulators cut interest rates by 50 bps after the US central bank unexpectedly reduced its benchmark rates to mitigate the impact of the virus on its economy. Central bank of Gulf states cut benchmark interest rates following the US Federal Reserve's decision to reduce its key rates to offset the impact of the coronavirus on its economy, after a tumultuous week for markets that wiped out $7 trillion of global stocks and put further downward pressure on oil prices.. The UAE banking regulator slashed the interest rate on its certificate of deposits by 50 bps, it said in a statement late on Tuesday evening.. The CD is a monetary policy instrument through which changes in interest rates are transmitted to financial institutions.. The reduced rates are effective from Wednesday when the repo rate applicable to borrowing short-term liquidity from the central bank also go down by 50 bps, it said.. The G7, which includes the US, Japan, Germany, Britain, France, Italy and Canada, on Tuesday said it was ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy.. I think the floodgate is wide