Fed’s Dash to Zero Lets Gulf Top Off Stimulus With Rate Cuts - Bloomberg

Fed’s Dash to Zero Lets Gulf Top Off Stimulus With Rate Cuts - Bloomberg:

• The central bank of the United Arab Emirates cut the rate on one-week certificates of deposit by 75 basis points. 
• The Saudi Arabian Monetary Authority also lowered its repo rate by 75 basis points to 1%, and its reverse repo rate by the same amount to 0.5%. 
• Kuwait reduced its discount rate by 100 basis points to an all-time low of 1.5%. 
• Qatar’s central bank decreased its deposit and repurchase rates by half a percentage point and lowered the lending rate by 100 basis points. 
• Bahrain cut its policy rate by 75 basis points. 
• The central bank of Oman, one of the Gulf’s weakest economies, has yet to make an announcement.

Key highlights of stimulus in the Gulf:

• Saudi Arabia’s central bank pledged a 50-billion riyal ($13.3 billion) package to support private businesses, while the U.A.E.’s announced a 100-billion dirham ($27.2 billion) program to assist its lenders.
• Qatar was the latest to unveil a stimulus program of 75-billion riyals ($20.5 billion).
• Bahrain’s cabinet will authorize the finance minister to use up to 5% of this year’s government spending on emergency expenses to limit the impact of the coronavirus, Bahrain News Agency reported Monday.
• Abu Dhabi Crown Prince Mohammed Bin Zayed said that all approved capital expenditure and development projects in the emirate will continue to take place. He also said a new committee will be formed to review lending options to support local companies.
• Further measures could be introduced if required, according to Al Mansoori.