Most Gulf countries’ central banks raised key interest rates by half a percentage point following the Federal Reserve’s decision to increase interest rates by 50 basis points.
Saudi Arabia and the United Arab Emirates raised interest rates by 50 basis points. Saudi Arabia’s central bank raised repo rates to 5 percent and reverse repo rates to 4.5 percent.
Related: Fed raises interest rates half a point, a 15-year high
The UAE also raised its policy interest rate to 4.4 percent, effective today, Thursday.
The banks of Bahrain and Qatar announced a 50 basis point hike. Kuwait raised the discount rate by 50 basis points last week, from three percent to 3.50 percent, effective December 7.
