HomeEconomyGulf central bank raises rates after Fed slashes for third straight rate... Economy Gulf central bank raises rates after Fed slashes for third straight rate hike By farahat September 21, 2022 0 110 views Share FacebookTwitterPinterestWhatsApp LCO -0.15% Add to/Remove from watchlist Add to watch list Add Location Job added successfully: Please name your portfolio type: purchase Sell date: quantity: price Point Value: Leverage: 1:1 1: 1 : 1: DUBAI (Reuters) – Gulf states’ central banks have raised interest rates for the third time in three quarters after the Federal Reserve raised interest rates for the third time in a row. Key interest rates were raised on Wednesday, Brent fell below $ immediately after the Fed news. While the Fed’s move was motivated by lowering U.S. inflation, it also helped guide monetary policy in the Gulf as the region Most of the currencies are pegged to the US dollar. Saudi Arabia and Bahrain raised their benchmark rates accordingly 15 basis points, Qatar and the United Arab Emirates indicated that their The matching rate hike will take effect on Thursday. Rising oil prices and rising non-oil revenues in the region’s largest economies, Saudi Arabia and the United Arab Emirates, also boosted their GDP growth forecasts. “So far, non-oil activity has remained resilient and the improving economic backdrop supports private confidence and credit demand,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank Say. “However, we expect sharp rises in interest rates to dampen domestic demand as they build up and seep into borrowing rates “Monetary tightening will increase headwinds for the economy next year, as well as global recession risks and the prospect of a (for) strong GCC currency, which will affect competitiveness.” The Saudi Central Bank, also known as SAMA, raised repo and reverse repo rates bps to 3.15% and 3.%, respectively. The UAE’s central bank will raise its benchmark interest rate by three-quarters of a percentage point to 3 from Thursday. %. Qatar and Bahrain also indicated that they are raising major rates basis points. Qatar’s central bank will raise the lending rate to 4.5 percent and the deposit rate to 3 from Thursday. %, the repo rate is 4.0%. Bahrain raised its key policy rate on its one-week deposit facility to 4%. Kuwait pegged the dinar to a basket of currencies, including the US dollar, Its key discount rate has increased basis points (bps) to 3%, more flexible than its neighbors to deviate from Fed policy. Oman, the remaining member of the six-nation Gulf Cooperation Council, is expected to follow a similar move. Share FacebookTwitterPinterestWhatsApp Previous articleIDB board thinks Claver-Carone's 'emerging consensus' should be removed – sourceNext articleWhy do cryptocurrency casinos continue to gain popularity? farahat RELATED ARTICLES Economy Bank of England halts run of interest rate hikes as economy slows September 21, 2023 Economy Norges Bank lifts borrowing costs to a 14-year high, hints at further hike September 21, 2023 Economy Taiwan central bank likely to hold benchmark rate steady amid election uncertainty September 21, 2023 LEAVE A REPLY Cancel reply Comment: Please enter your comment! Name:* Please enter your name here Email:* You have entered an incorrect email address! Please enter your email address here Website: Save my name, email, and website in this browser for the next time I comment. USA Trends Messi-mad Indian mom driving to Qatar to see hero in his final World Cup December 7, 2022 Drew Brees fakes lightning strike in promotional stunt for online sportsbook December 3, 2022 Who could be speaker, if not Kevin McCarthy December 3, 2022 3 bold Utah football predictions for Pac-12 Championship vs. USC December 3, 2022 Load more LAST NEWS Ethereum Bearish Signal Reappears After Five Years To Threaten ETH’s Price September 21, 2023 XRP Price Poised For A 250% Surge, Analyst Points To This Key Catalyst September 21, 2023 Terra Classic Forecast: Anticipating A 25% Price Surge With Bullish Patterns September 21, 2023 Aksys Games Releases Experience’s Mon-Yu Dungeon RPG September 21, 2023 Load more Featured NEWS Yankee turns to nasty Nestor for short break for postponed G5 October 18, 2022 Indian Sports Activities Residence Latest Information, Results, Olympics Stories February 15, 2022 At 83, Gaetano Pesce is still a design maverick April 27, 2023 AUD/NZD dips to fresh seven-month low below 1.0800 as RBNZ hikes rates by 75 bps November 23, 2022 Load more
