Central banks in the Gulf kept interest rates unchanged, in line with the US Federal Reserve’s decision, which fixed interest rates as expected.
Central banks usually follow the decisions of the US Federal Reserve, linking their currencies to the dollar, with the exception of Kuwait, which links the dinar price to a basket of currencies.
The Central Bank of the Emirates said that it kept the basic interest rate applied to the overnight deposit mechanism at 5.40 percent.
The Qatar Central Bank also announced that it would keep the current interest on deposits at 5.75 percent, lending at 6.25 percent, and repurchase at 6 percent.
In the same direction, the Central Bank of Oman kept the interest rate on repurchase operations for local banks unchanged at 6 percent.
The Central Bank of Oman said that this decision comes in line with the monetary policy of the Central Bank of Oman, which aims to maintain the fixed exchange rate system for the Omani riyal.
The Federal Reserve fixed interest rates on Wednesday, as was widely expected, to remain at a level between 5.25 percent and 5.50 percent, the highest in 22 years, but it hinted at another additional increase in interest before the end of the year, and expected rates to remain high. for a longer period in order to reduce inflation to the target level of 2 percent.