Qatar May Cut Rates More to Expand Infrastructure: Arab Credit - Bloomberg

Qatar, host of the 2022 soccer World Cup, may lower its benchmark interest rate by at least another half percentage point as the emirate seeks to spur credit growth to finance economic development, analysts said.

Qatar’s central bank this month reduced its overnight lending rate and repurchase rate to 4.5 percent from 5 percent. The overnight deposit rate was cut a quarter point to 0.75 percent. The move aims to boost credit for spending on infrastructure and real-estate projects, the central bank said.

Lower commodity costs and concern that U.S. and European growth is faltering may keep inflation in check globally, allowing Qatar to lower borrowing costs even as the government projects economic growth of 16 percent this year. As part of its bid to host the World Cup, Qatar says it will build nine stadiums and refurbish three more.

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