Today: 17 June 2025
3 November 2022
1 min read

Gulf central banks hike interest rates

The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate…reports Asian Lite News

Gulf central banks said on Wednesday they would hike their key interest rates after the US Federal Reserve upped its key policy rate by three-quarters of a percentage point for the fourth straight time.

Saudi Arabia and Bahrain increased rates by 75 basis points, while Qatar increased rates by between 50 and 75 basis points.

The Central Bank of the UAE earlier on Wednesday announced it would raise the Base Rate applicable to the Overnight Deposit Facility (ODF) by 75 basis points – from 3.15% to 3.90%, effective from Thursday, 3 November 2022.

The CBUAE also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate.

The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of the CBUAE’s monetary policy. It also provides an effective interest rate floor for overnight money market rates.

Meanwhile, this was the US Federal Reserve’s the fourth such hike in its continuing efforts to cool the economy and curb inflation.

The Fed has planned more hikes but, as Chairman Jerome Powell said, the interest hikes will slow down at an appropriate time.

The hike was announced after a meeting of the Fed’s top decision-making body.

“The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 per cent over time,” the Fed statement said.

The Fed added: “In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation as well as economic and financial developments.”

ALSO READ: UAE-UK roundtable explores industrial investments

Previous Story

Arab League vows joint action to stem challenges

Next Story

ADIPEC explores latest smart industries in energy sector

Latest from -Top News

India Evacuates Students from Tehran

The Ministry also said that the Indian Embassy is continuously in touch with the community to provide all feasible assistance….reports Asian Lite News Amid rising tensions between Israel and Iran, India has

Trump: Get Out of Tehran Now!

The US President also announced that he would cut short his visit to the Group of 7 (G7) summit in Canada to closely monitor the situation …reports Asian Lite News US President

Iran Hits Key Israeli Oil Facility

Three company employees were killed in the pre-dawn attack on Monday night, which ignited fires at the strategic complex….reports Asian Lite News Bazan, Israel’s largest oil refinery company, announced that all of

Tehran Alert: India Asks Nationals to Evacuate

As the Israel-Iran conflict entered its fifth day, the hostilities between the two nations continued to escalate…reports Asian Lite News India has urged its nationals in Iran and Persons of Indian Origin(PIO)

Israel Takes Out Iran Spy Leaders

Among those killed were Mohammad Khatami, head of the IRGC Intelligence Organisation since 2022, and his deputy Mohammad Hassan Mahkaghi….reports Asian Lite News Israel on Monday announced that four high-ranking Iranian intelligence
Go toTop

Don't Miss

‘New India-UAE treaty ensures continuity of investment protection’

The UAE is the seventh largest with a share of

India Praises UAE’s Global AI Benchmark 

Kaustubh Dhavse, Maharashtra CM’s OSD, hailed the UAE’s AI model