#Qatar, #UAE, Other Gulf Central Banks Maintain Interest Rate Hike Pause Like Fed - Bloomberg

Qatar, UAE, Other Gulf Central Banks Maintain Interest Rate Hike Pause Like Fed - Bloomberg

Central banks in the Gulf including Qatar and the United Arab Emirates followed the Federal Reserve’s decision to keep interest rates unchanged in order to protect their currencies’ peg against the US dollar.

The Federal Reserve held interest rates at a 22-year high for a second straight meeting, while suggesting that the recent rise in Treasury yields may weigh on the economy and inflation.

Most of the GCC’s central banks move in tandem with the Fed due to the greenback-pegging policy, with Kuwait the only exception in the six-member economic bloc as its dinar is linked to a basket of currencies.

Qatar said it would keep its repo rate unchanged 6%, its lending rate at 6.25% and its deposit rate at 5.75%.

The UAE maintained its base rate applicable to the overnight deposit facility at 5.40%.