US Fed gives consumers, businesses cheer with lower 0.5% rate hike – UAE, GCC central banks match hikes

US Fed gives consumers, businesses cheer with lower 0.5% rate hike – UAE, GCC central banks match hikes

Dubai: As was expected, the US Federal Reserve has come in with a lower rate hike than the last four times, providing some leeway for consumers and businesses worldwide in planning for their 2023 cash flow and debt requirements. The UAE and some other Gulf central banks have already matched the 0.5 per cent rate hike with immediate effect, and which has to a large extent been factored in by local and regional businesses. "The Central Bank of the UAE has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 50 basis points – from 3.9 per cent to 4.4 per cent, effective from Thursday (December 15)," the regulator said in a statement. "The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the base rate." Bahrain hiked rates from 4.75 per cent to 5.25 per cent, while Qatar has hiked the repo rate by 50 basis points to 5.25 per cent. The slowing down of the rate of hikes - from 0.75 per cent each the last four times to 0.5 per cent now - should provide