Khaberni - Several Gulf central banks announced on Wednesday that they were cutting interest rates, in line with the US Federal Reserve's decision to cut rates for the third consecutive time during 2025.
The decisions included the UAE, Qatar, and Bahrain, while Kuwait kept its interest rate unchanged, affirming the stability of its monetary situation.
Details of the interest rate cut in Qatar
The Qatar Central Bank announced a reduction in the interest rates on deposits, lending, and repurchase by 25 basis points, marking its second reduction during the year 2025, setting the deposit rate at 4.10%, the lending rate at 4.6%, and the repurchase rate at 4.35%.
The bank also reduced the base rate on overnight deposit facilities from 4.15% to 3.90%, with the decision set to take effect from Thursday, October 30, in a move to support financial stability and align with US monetary policy actions.
Interest rate reductions in Bahrain and the UAE
The Central Bank of Bahrain announced a reduction in the overnight deposit interest rate by 25 basis points to 4.5%, effective October 30, with the aim of enhancing financial stability and supporting local economic activity.
The Central Bank of the UAE also made a similar cut in interest rates, in accordance with the policies of the American Federal Reserve, as part of a framework to maintain the balance of financial markets and support economic growth in the country.
Kuwait keeps the interest rate steady
In contrast, the Central Bank of Kuwait announced it was keeping the interest rate steady, affirming that the monetary situation is stable and there is no need for further reduction, while maintaining policies that ensure the stability of financial and economic conditions in the country.
