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ABU DHABI / WAM
The central banks of Saudi Arabia, Kuwait, Qatar, and Bahrain have decided to raise their interest rates, tracking a hike in the US Fed’s benchmark rate.
The move came as the US Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point to a range of 3.00%-3.25% on Wednesday- the biggest increase since 1994.
The Central Bank of the UAE (CBUAE) decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 75 basis points – from 2.4% to 3.15%, effective from Thursday, 22 September 2022.
The rate increase, announced Wednesday at the end of the Fed’s two-day policy meeting, was the fifth of the year and the third consecutive three-quarter point hike.