Gulf Banks Lower Interest Rates Following Federal Reserve Decision

SadaNews - Several Gulf central banks announced on Wednesday the reduction of interest rates following a similar decision by the U.S. Federal Reserve.

The Saudi Central Bank (SAMA) decided to cut the repo rate by 25 basis points to 4.75%, and to lower the reverse repo rate by 25 basis points to 4.25%, according to the bank's statement today.

The Central Bank of the UAE also lowered the main interest rate applied to overnight deposit facilities by 25 basis points to 4.15% from 4.40%, effective from tomorrow, Thursday.

The Central Bank of Bahrain stated in a release that it reduced the interest rate on overnight deposits by 25 basis points to 4.75%, with the decision taking effect from tomorrow, Thursday, according to Reuters.

The Central Bank of Kuwait announced that it cut the discount rate by 25 basis points to 3.75% following the U.S. Federal Reserve's decision to lower interest rates by a quarter of a percentage point. The bank clarified in a statement that the decision takes effect from tomorrow, Thursday.

Additionally, the Qatar Central Bank announced a reduction in the repo rate by 25 basis points to 4.60%.

On Wednesday, the U.S. Federal Reserve announced a cut in interest rates by 25 basis points, bringing the main overnight interest rate to 4.0 - 4.25%. The U.S. central bank noted that the negative risks facing employment have increased.