Central banks increase rates after Fed decision
The Central Bank raised interest rates by 25 basis points in several regional central banks following the U.S. Federal Reserve's decision to increase its interest rate by the same margin. The Bahrain Central Bank increased its interest rate from 4.25% to 4.50%, the UAE from 3.65% to 3.90%, and Qatar raised its deposit and lending rates. Additionally, the Saudi Central Bank increased the repo rate to 4.50%, while the Omani Central Bank also set it at 4.50%. Regarding currencies, the dollar appreciated against the euro following the Federal Reserve's decision, with the euro dropping 0.2% against the dollar after the Fed raised its overnight rate from 3.75% to 4.00%, while hinting at further hikes to combat persistent high inflation that remains above the 2% target.
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