GCC central banks lower interest rates after the latest US Fed rate cut

Posted on September 20, 2024   |  

GCC central banks cut interest rates following a US Federal Reserve rate reduction.

The US Fed lowered its benchmark rate by 50 basis points to 4.75%–5%.

This is the first-rate cut after the Fed raised rates 11 times over 16 months and held them steady for over a year.

The Fed plans further rate cuts into 2025.

The UAE Central Bank reduced its Overnight Deposit Facility rate by 50 basis points to 4.90%, starting September 19, 2024.

Saudi Arabia’s Central Bank cut its repo rate by 50 basis points to 5.50% and the reverse repo rate to 5%.

Qatar’s central bank lowered its key rates by 55 basis points, with the lending rate at 5.70%, the deposit rate at 5.20%, and the repo rate at 5.45%.

The Central Bank of Bahrain cut its overnight deposit rate by 50 basis points to 5.50%, effective September 19, 2024.