Saudi Press

Saudi Arabia and the world
Friday, Mar 29, 2024

Gulf central banks raise interest rates following Fed decision

Gulf central banks raise interest rates following Fed decision

The central banks of Saudi Arabia, the United Arab Emirates, Bahrain, Qatar and Kuwait decided on Wednesday to raise interest rates.
The announcement by the five GCC countries came following the US Federal Reserve's decision to raise the main interest rate by 75 basis points to 2.5%.

The Saudi Central Bank (SAMA) announced that it would raise the rate of repurchase agreements (Repo) by 75 basis points from 2.25 to 3.00%.

Also, SAMA has raised the rate of reverse repurchase agreements by 75 basis points, from 1.75 to 2.50%,

SAMA stated that the decision is consistent and in line with its goals of maintaining monetary and financial stability, and in light of global developments.

Meanwhile, the Central Bank of the United Arab Emirates (CBUAE) announced that it will raise the base rate by 75 basis points starting from Thursday, July 28, 2022, and the Central Bank of Kuwait (CBK) decided to raise the discount rate by a quarter of a percentage to 2.50% from 2.25% as of Friday.

The Qatar Central Bank (QCB) also decided to raise interest rates as of July 28. The bank will raise deposit rate (QCBDR) by 75 basis points to 3.00%, in addition to raising the lending interest rate from by 50 basis points to 3.75%. QCB decided to raise Repo Rate by 75 basis points to 3.25%.

The Central Bank of Bahrain (CBB) decided to raise the basic interest rate on one-week deposits from 2.50% to 3.25%, in addition to raising the interest rate on overnight deposits from 2.25% to 3.00%, and raising the interest rate on deposits for a period of 4 weeks from 3.25% to 4.00%.

The CBB also decided to raise the interest rate imposed by the Central Bank of Bahrain on retail banks in return for lending facilities from 3.75% to 4.50%.

The Federal Reserve raised interest rates for the fourth time this year, and for the second time in a row, by 75 basis points.

"Recent indicators of spending and production have softened. Growth in consumer spending has slowed significantly, in part reflecting lower real disposable income and tighter financial conditions," the FOMC stated in a press release.

"Despite these developments, the labor market has remained extremely tight, with unemployment rate near a 50-year low, job vacancies near historical highs, and wage growth elevated," the FOMC said.

"Over the past three months, employment rose by an average of 375,000 jobs per month, down from the average pace seen earlier in the year but still robust," the statement clarified.

The agencies stated that US central bankers move aggressively to cool the strongest surge in inflation in more than four decades, without derailing the world's largest economy.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×