Dubai: Central Banks in most of the Gulf countries increased the interest rate. This decision was taken after the US Federal Reserve Board’s announcement to increase the Interest on Reserve Balances (IORB) by 75 basis points.
The Central Bank of the UAE (CBUAE) has decided to raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 75 basis points. The rate is hiked to 3.90% from 3.15%. The new rate will come into force from today, 3 November 2022.
The Saudi central bank, also known as SAMA, lifted its repo and reverse repo rates to 4.5% and 4%, respectively. Central Bank in Bahrain hiked its main interest rate by 75 basis points. Central Bank in Qatar increased rates by between 50 and 75 basis points. Kuwait and Oman did not immediately announce any rate changes.