A number of central banks in the Gulf Cooperation Council countries cut interest rates, after the Federal Reserve (the US central bank) cut the cost of lending for the first time since 2020.
Qatar Central Bank cut key interest rates by 55 basis points, following the US Federal Reserve’s half-percentage-point cut in borrowing costs.
Monetary Policy Committee Decision on Monetary Policy Instruments – September 2024.#Qatar_Central_Bank pic.twitter.com/uLk3ApYWJT
— Qatar Central Bank (@QCBQATAR) September 18, 2024
A statement by the Qatar Central Bank, published on social media, stated:
- The lending rate fell to 5.70%.
- And on deposits to 5.20%.
- And the repurchase rate to 5.45%.
For its part, the UAE Central Bank said in a statement that the country reduced the basic interest rate applied to overnight deposit facilities by 50 basis points today, from 5.40% to 4.90%.
The Central Bank of Bahrain also said in a statement that it had cut the overnight deposit rate by 50 basis points from 6% to 5.50%.
For its part, the Central Bank of Kuwait reduced the discount rate by 25 basis points to 4% from 4.25%.
In turn, the Saudi Central Bank said in a statement on Wednesday that it had decided to reduce the repurchase agreement (repo) rate by 50 basis points to 5.50%, and reduce the reverse repurchase agreement (reverse repo) rate by 50 basis points to 5%.
It is noteworthy that the central banks of the Gulf Cooperation Council countries link their currencies to the US dollar, except for the Central Bank of Kuwait, which adopts a basket of currencies.
