The US Federal Reserve decided, on Wednesday evening, to raise interest rates by half a percentage point, the largest rate hike in the United States in 22 years.
The Fed attributed the decision to raise interest rates to the steady increase in inflation rates, which were further fueled by the current war in Ukraine, which made fuel prices reach record levels.
The consumer price inflation index rose by 8.5% during the 12 months ending last March, the highest rate since 1982.
The Fed approved last March, raising the federal funds rate by a quarter of a percentage point, to 0.5%, the first time since 2018.
The Fed's decision yesterday, followed by 5 Gulf central banks taking similar decisions, including Saudi Arabia, the UAE, Kuwait, Bahrain and Qatar.
And 4 of the five Gulf central banks decided to raise interest rates with the same value as the hike taken by the US Federal Reserve: Saudi Arabia, the UAE, Bahrain and Qatar, while the Central Bank of Kuwait raised the interest rate. by only a quarter of a percentage point.
The Central Bank of Oman is widely expected to raise interest rates as well.
