Gulf central banks raise key rates
MANAMA, November 3, 2022
Central banks of Bahrain, Qatar, Saudi Arabia and UAE have increased their key interest rates after the US Federal Reserve raised its key policy rate by three-quarters of a percentage point for the fourth straight time.
Saudi Arabia and Bahrain increased rates by 75 basis points, while Qatar increased rates by between 50 and 75 basis points.
The Central Bank of the UAE raised the base rate applicable to the overnight deposit facility (ODF) by 75 basis points – from 3.15% to 3.90%, effective from November 3, said a Wam news agency report.
The Central Bank of Bahrain (CBB) has decided to raise its key policy interest rate on the one-week deposit facility from 4% to 4.75%, the bank said in a statement.
The move is in light of the development in the international financial market and the continuous measures taken by the CBB to ensure the smooth functioning of the money markets in Bahrain, said the CBB.
The CBB has also decided to raise the overnight deposit rate from 3.75% to 4.5%, the four-week deposit rate from 4.75% to 5.5% and the lending rates from 5.25% to 6%.
The CBB continues to monitor global and local market developments closely in order to take any further necessary actions to maintain monetary and financial stability in the kingdom, it said. -TradeArabia News Service
