Since most GCC currencies are pegged to the US dollar, monetary policy follows the US decisions.

The rate freeze is due to a lack of progress towards the 2% inflation objective.

Vijay Valecha, chief investment officer at Century Financial, stated that market expectations have adjusted, forecasting only one rate cut by the end of the year instead of the six anticipated at the beginning of 2024.

The text discusses the monetary policies of central banks in the Gulf Cooperation Council (GCC) countries, with the exception of Kuwait.

Most GCC countries, including the UAE, Saudi Arabia, Bahrain, Oman, and Qatar, have currencies pegged to the US dollar, causing their interest rates to follow the Federal Reserve's lead.

As a result, interest rates in these countries are expected to remain stable in the near future, benefiting the profitability of GCC banks.

The Saudi Central Bank, also known as SAMA, and other central banks in the region, including the UAE, have kept their repo rates at 6 percent in response to the Fed's decision.

The text discusses the relationship between repo rates, which are a type of short-term borrowing using government securities, and the economic connections between the GCC countries and the global economy, specifically the US.

The US Federal Reserve has announced that they do not plan to reduce interest rates until inflation stabilizes and moves closer to their 2% target.

Therefore, rate cuts are unlikely in the near future.