Wednesday 4 March 2020

Gulf Gets ‘Gift From Fed’ But Fiscal Stimulus Can Be Gamechanger - Bloomberg

Gulf Gets ‘Gift From Fed’ But Fiscal Stimulus Can Be Gamechanger - Bloomberg:

Policy makers in the Gulf followed the U.S. Federal Reserve’s emergency move on Tuesday, lowering interest rates in response to the coronavirus outbreak as the focus shifts to the need for fiscal stimulus to offset the damage to regional economies.

Central banks in Saudi Arabia, the United Arab Emirates, Qatar and Bahrain all matched the Fed’s half-percentage point cut, after Chairman Jerome Powell said the fallout from the virus had increased risks to the U.S. economic outlook. Kuwait, which maintains a peg to a basket of currencies, reduced its benchmark by 25 basis points.


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