Doha, (Business News Report)|| Qatar Central Bank has fixed the Bank’s Deposit Rate (QCBDR) at its current level of 1.00%.
The bank said in a statement on Thursday that it we will keep the bank’s lending interest rate (QCBLR) at its current level of 2.50%.
Qatar Central Bank decided to raise the QCB Repo Rate by 25 basis points to 1.25%.
The bank stated that the decision to raise the repurchase rate came in response to the US Federal Reserve’s decision.
According to the bank’s statement, this is based on local and international economic data.
The bank decided to keep the bank’s deposit interest rate at its current level of 1%, while maintaining the bank’s lending interest rate at its current level of 2.50%.
Yesterday, the US Federal Reserve approved raising the federal funds interest rates by a quarter of a percentage point, to become 0.5%, which is the first time to increase since 2018.
The Fed attributed the decision to raise interest rates to the steady increase in inflation rates, which were further fueled by the current war in Ukraine, and which reached fuel prices to record levels.
Meanwhile, four Gulf countries went along with the decision to raise the interest rate. Saudi Arabia, the UAE, Kuwait and Bahrain raised interest rates.
For the first time since 2018, the Fed has raised the US interest rate and is expected to take similar steps to curb inflation.
The Central Bank of the Emirates decided to raise the base rate on overnight deposit facilities by 25 basis points, as of today, Thursday.
The decision, according to the bank, came against the backdrop of the Federal Reserve’s decision to raise the interest rate on reserve balances by 25 basis points at its meeting held on Wednesday.
Abu Dhabi kept the interest rate for borrowing short-term liquidity from the Central Bank across all existing credit facilities at 50 basis points above the base rate.
The base rate, which is linked to the interest rate on reserve balances approved by the US Federal Reserve, determines the general position of the monetary policy of the UAE Central Bank.
It also provides a minimum effective interest rate for overnight cash market rates in the country.