Doha – Mubasher: The Qatar Central Bank (QCB) on Thursday announced its decision to raise the Qatar money market rate standing facility (QMR) deposit rate by 25 basis points (bps) to 1.5% from 1.25% following a similar decision taken by the US Federal Reserve on Wednesday.
Meanwhile, it has decided to keep the QMR lending rate (QMRL) and Repo rate unchanged.
Qatar's interbank rate jumped 230 basis points (bps) to its highest level in seven years, Qatari bankers said Wednesday.
On the same day, the US Federal Reserve raised interest rates for the second time in 2017, citing confidence in the U.S. economy and a strengthening job market.
The US central bank further said it will begin reducing its holdings of bonds and other securities this year.
The bank raised its benchmark lending rate by a quarter percentage point to a target range of 1% to 1.25%, adding that it predicts one more interest rate increase in 2017.
