Connect with us

Hi, what are you looking for?

Finance

Gulf banks raise interest rates in line with US Federal Reserve’s decision

Gulf banks

Riyadh, (Business News Report)|| Gulf banks have risen interest rates late on Wednesday night, in line with the US Federal Reserve’s decision.

The US Federal Reserve announced a 0.75 point rate hike, a move not seen since 1994.

In the movements of Gulf banks, the Central Bank of Kuwait decided to raise the discount rate by a quarter of a percentage point to 2.25%.

The Governor of the Central Bank of Kuwait, Basil Ahmed Al-Haroun, said in a statement that it was also decided to make an adjustment in varying rates in the monetary market intervention rates that are currently applied to all periods of the interest rate structure.

These terms include repurchase operations (repo), Central Bank of Kuwait bonds and securitization, the system for accepting time deposits, direct intervention tools, in addition to public debt instruments.

In turn, the Qatar Central Bank raised the lending interest rate by 50 basis points to 3.25%, and also raised the repurchase rate by 75 basis points to 2.50%.

Meanwhile, the Central Bank of Bahrain approved the Fed’s move to raise the deposit rate for overnight deposits by 75 basis points to 2.25%.

The Bank of Bahrain stated in a statement that “the interest rate on overnight deposits was raised from 1.50% to 2.25%, and the interest rate on deposits for a period of four weeks was raised from 2.50% to 3.25%.”

It added that the interest rate imposed by the Central Bank on retail banks in return for lending facilities was also raised from 3.00% to 3.75%.

The Central Bank of Bahrain stated that it is following developments in the international and local market, in order to take any additional measures necessary in order to maintain monetary and financial stability in the Kingdom.

For its part, the Central Bank of the United Arab Emirates decided to raise the “base rate” on overnight deposit facilities by 75 basis points, as of tomorrow, Thursday.

The Central Bank also decided to keep the rate applicable to borrowing short-term liquidity from the Central Bank through all existing credit facilities at 50 basis points above the base rate.

The Saudi Central Bank also decided to raise key interest rates by 50 basis points.

The Fed’s expectations, according to a statement issued today, Wednesday, indicate a further increase at a strong pace, to counter inflation, pointing out that the rate cut will not start until 2024.

It explained that inflation is still high in the US markets, which reflects supply and demand imbalances, high energy prices, and pressures on the prices of other basic commodities.

special

Kuwait, (Business News Report)|| S&P Global Ratings has warned of the exposure of banks in Kuwait to real estate and construction works this year....

World

Riyadh, (Business News Report)|| Government spending in the Gulf states has decreased by 2% during the first quarter of this year 2022, compared to...

special

Riyadh, (Business News Report)|| Gulf stock exchanges achieved record highs in the first quarter of this year 2022, supported by energy prices that are...

Business

Riyadh, (Business News Report)|| The profits of the Gulf banking sector jumped by 40% during the past year 2021, to reach $35 billion, compared...