Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Gulf central banks raise interest rates following Fed decision

Gulf central banks raise interest rates following Fed decision

The central banks of Saudi Arabia, the United Arab Emirates, Bahrain, Qatar and Kuwait decided on Wednesday to raise interest rates.
The announcement by the five GCC countries came following the US Federal Reserve's decision to raise the main interest rate by 75 basis points to 2.5%.

The Saudi Central Bank (SAMA) announced that it would raise the rate of repurchase agreements (Repo) by 75 basis points from 2.25 to 3.00%.

Also, SAMA has raised the rate of reverse repurchase agreements by 75 basis points, from 1.75 to 2.50%,

SAMA stated that the decision is consistent and in line with its goals of maintaining monetary and financial stability, and in light of global developments.

Meanwhile, the Central Bank of the United Arab Emirates (CBUAE) announced that it will raise the base rate by 75 basis points starting from Thursday, July 28, 2022, and the Central Bank of Kuwait (CBK) decided to raise the discount rate by a quarter of a percentage to 2.50% from 2.25% as of Friday.

The Qatar Central Bank (QCB) also decided to raise interest rates as of July 28. The bank will raise deposit rate (QCBDR) by 75 basis points to 3.00%, in addition to raising the lending interest rate from by 50 basis points to 3.75%. QCB decided to raise Repo Rate by 75 basis points to 3.25%.

The Central Bank of Bahrain (CBB) decided to raise the basic interest rate on one-week deposits from 2.50% to 3.25%, in addition to raising the interest rate on overnight deposits from 2.25% to 3.00%, and raising the interest rate on deposits for a period of 4 weeks from 3.25% to 4.00%.

The CBB also decided to raise the interest rate imposed by the Central Bank of Bahrain on retail banks in return for lending facilities from 3.75% to 4.50%.

The Federal Reserve raised interest rates for the fourth time this year, and for the second time in a row, by 75 basis points.

"Recent indicators of spending and production have softened. Growth in consumer spending has slowed significantly, in part reflecting lower real disposable income and tighter financial conditions," the FOMC stated in a press release.

"Despite these developments, the labor market has remained extremely tight, with unemployment rate near a 50-year low, job vacancies near historical highs, and wage growth elevated," the FOMC said.

"Over the past three months, employment rose by an average of 375,000 jobs per month, down from the average pace seen earlier in the year but still robust," the statement clarified.

The agencies stated that US central bankers move aggressively to cool the strongest surge in inflation in more than four decades, without derailing the world's largest economy.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×