Mubasher: Central banks in Saudi Arabia, the United Arab Emirates, and Bahrain have followed the United States Federal Reserve in raising interest rates.
The Saudi Arabian Monetary Authority (SAMA) decided to raise its two key interest rates by 25 basis points or 0.25%.
Reverse repo rate has been increased from 200 points (2%) to 225 points (2.25%), and repo rate was also raised from 250 points (2.5%) to 275 points (2.75%).
Similar decisions were announced by Bahrain and the UAE.
The Central Bank of Bahrain raised its interest rate on its one-week deposit facility to 2.50% from 2.25%, and the overnight deposit rate to 2.25% from 2%, while its one-month deposit rate was raised to 3.25% from 3%, and its lending rate to 4.25% from 4%.
Meanwhile, the Central Bank of Kuwait (CBK) maintained its main rate unchanged at 3%.
