CBB announces overnight rate cut after US Fed move
COMMERCIAL NEWS
GCC central banks have slashed interest rates after the US Federal Reserve voted to lower interest rates by a half percentage point on Wednesday.
The Federal Reserve slashed its benchmark interest rates by 50 basis points, leaving rates at a range of 4.75% to 5%, after raising its benchmark interest rates 11 times in 16 months and then leaving it unchanged for more than a year.
The US Fed has signalled more reductions will follow. The move is expected to be the first in a series of rate cuts that will extend into 2025.
Shortly after the Fed's announcement, the Central Bank of Bahrain (CBB) announced its decision to cut the overnight deposit rate by 50 basis points from 6.00% to 5.50%, effective tomorrow (September 19).
This decision comes as part of the measures taken by CBB in maintaining monetary and financial stability in the Kingdom of Bahrain in light of global financial market developments.
UAE Central Bank too decided to cut the base rate applicable to the Overnight Deposit Facility (ODF) by 50 basis points – from 5.40% to 4.90% effective tomorrow.
The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.
Qatar's central bank cut key interest rates by 55 basis points. The lending interest rate was cut to 5.70%, the deposit interest rate to 5.20% and the repo rate to 5.45%, according to a central bank statement.
