Khaberni - Most central banks in the Gulf region lowered the key interest rates on Wednesday, after the Federal Reserve (the US central bank) decided to cut the interest rates by a quarter of a percentage point, marking its second interest rate cut this year.
Two policymakers at the Federal Reserve objected to the decision to cut interest rates by 25 basis points, and Jerome Powell, the chair of the Board, stated that another rate cut in December is not a forgone conclusion.
Saudi Arabia reduced the repurchase agreement (repo) rate by 25 basis points to 4.50%, and its central bank also reduced the reverse repo rate by 25 basis points to 4%.
The Central Bank of the UAE decided to cut the key interest rate (base rate) on overnight deposit facilities by 25 basis points from 4.15% to 3.90% starting Thursday.
It is expected that the Gulf region will benefit from lower interest rates, stimulating economic activity and boosting growth in non-oil sectors.
Following the Federal Reserve, the central banks of Qatar, Bahrain, and Oman also cut their key interest rates by 25 basis points.
The Central Bank of Kuwait decided to keep interest rates unchanged, stating that monetary policy aligns with local economic conditions.
