Gulf Central Banks have hiked their interest rates in response to US Fed surge

The world economy is witnessing inflation never seen before in decades. On Wednesday, the Gulf region central banks have increased their interest rates. The ripple effect was led after United States Federal Reserve raised its target policy rate by 50 base points.

Also Read: 5 Most Richest European Countries As Per Their GDP

It is to be noted that all currencies of the Gulf countries are attached to the US dollar. But this is not the case with Kuwait as its currency, Kuwaiti dinar is pegged to group of currencies which also includes the dollar.

UAE Central Bank

The Central Bank of UAE (CBUAE) has raised its base rate by 50 base points to 2.25 per cent, that would be effective from Thursday. The bank said it would “maintain the rate on borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 bps above the base rate”.

Saudi Arabia Central Bank

The Saudi Central Bank (SAMA) too has raised its repo rate and reverse repo rates by 50 base points each to 1.75 per cent and 1.25 per cent, respectively.

Qatar Central Bank

The Central Bank of Qatar would be raising its deposit and repo rates by 50 bps to 1.5 per cent and 1.75 per cent, respectively. The lending rate will also increase by 25 base points to 2.75 per cent.

Also Read: Which are the 10 poorest countries in Asia with lowest GDP

Central Bank of Kuwait

The Central Bank of Kuwait has said it has increased its discount rate by 25 basis points (bps) to 2 per cent. The move is far less aggressive than that of US Feds.

Central Bank of Bahrain

The Central Bank of Bahrain (CBB) said it has raised its key policy rate, on its facility of one-week deposit, by 50 bps to 1.75 per cent.

Desk Writer

Human stories, politics, diplomatic developments, climate and daily updates – all are assured to be at your access as we strive to bring the best news to you.

Recent Posts

Next Dodger Game: Schedule, Pitching Matchups, and Tickets

The Los Angeles Dodgers start their 2026 MLB season with a thrilling home series against the Arizona Diamondbacks at Dodger… Read More

March 28, 2026

Edwin Díaz Dodgers Debut: Striking Out the Side in Opening Thriller

Edwin Díaz made his Los Angeles Dodgers debut memorable on March 27, 2026, during the season-opening 5-4 game against the… Read More

March 28, 2026

Alex Freeland’s Historic Opening Day: Solo HR Ignites Dodgers Victory

Alex Freeland made MLB history with a solo home run that thrilled Dodger Stadium on Opening Day 2026. The Dodgers… Read More

March 28, 2026

Taylor Swift Dominates iHeartRadio Music Awards 2026 with 3rd Straight Artist of the Year Win

Taylor Swift continues her reign as pop's unstoppable force, clinching Artist of the Year at the iHeartRadio Music Awards 2026… Read More

March 27, 2026

Vincent D’Onofrio’s Kingpin Returns: What to Expect in Daredevil: Born Again Season 2

Daredevil: Born Again Season 2 picks up right after the intense finale of Season 1. It brings Vincent D’Onofrio’s Wilson… Read More

March 27, 2026

Carolyn Bessette Revival: How ‘Love Story’ Sparked a Fashion Comeback

Ryan Murphy's FX series Love Story premiered in February 2026. The show dramatizes the romance between John F. Kennedy Jr.… Read More

March 27, 2026

This website uses cookies.

Read More