Following the Fed’s lead, Gulf central banks cut interest rates by 25-30 basis points

Gulf central banks cut interest rates by 25-30 basis points, in line with the moves of the US Federal Reserve.

The Federal Reserve (US central bank) decided on Wednesday to cut interest rates for the third time in a row in 2024, by 25 basis points, so that they now range between 4.25% and 4.50%, in line with expectations.

Most Gulf economies have largely been immune to the uncontrollable rise in inflation in other countries, and the countries of the region have implemented ambitious plans to diversify sources of revenue and enhance non-oil growth.

The Central Bank of the UAE decided to cut the basic interest rate (base rate) by 25 basis points.

The Central Bank of Bahrain said in a statement that it had decided to cut the overnight interest rate by 25 basis points.

Qatar Central Bank announced a 30 basis point cut in interest rates for the third time in a row in 2024, with a total of 1.15% since the start of the monetary easing cycle followed by the Central Bank last September. The Qatar Central Bank explained that it reduced the basic interest rate on lending by 30 basis points to 5.10%, 4.60% on deposits, and 4.85% on repurchase.