After Fed Decision, Central Banks Raise Interest Rates by 25 Basis Points

Al-Taj News – Central banks raised interest rates by 25 basis points on Thursday, following the U.S. Federal Reserve’s decision to raise its interest rate by the same amount, in a move reflecting the spillover of the U.S. decision into other money markets.

The Central Bank of Bahrain decided to raise its overnight interest rate from 4.25% to 4.50%, with the decision taking effect Thursday.

The Central Bank of the UAE also raised its base rate on overnight deposit facilities from 3.65% to 3.90%, effective Thursday.

The Qatar Central Bank decided to raise its deposit rate, lending rate, and repurchase rate by 25 basis points.

The Saudi Central Bank announced that it would raise its repo rate by 25 basis points to 4.50%, while also raising its reverse repo rate by the same amount to 4.00%.

Likewise, the Central Bank of Oman decided to raise the interest rate on repurchase operations with local banks by 25 basis points, bringing it to 4.50% effective Thursday.