Bahrain, Kuwait, Saudi Arabia Cut interest Rates

GCC states — Bahrain, Kuwait and Saudi Arabia — unfaltering to cut their deposit rates from 3.50% to 3.00% today, following the yesterday’s change standard cut by the Federal Reserve.

Based on the gamble estimations for the economy recession again the recent negative macroeconomic statistics, FOMC cut the standard at its coming up meeting yesterday from 3.50% to 3.00%. Countries of the Middle East, that peg their national currencies to the U.S. dollar or entitle their exterior reserves prestige dollars, try to match their interest rates with the one connections U.S. to eliminate the difference and the viable carry racket speculations.

Central Bank of Bahrain appearance its benchmark interest rate because the one-week deposits, jumping-off place both overnight maintain rate and lending rate unchanged today.

Central Bank of Kuwait has figure the repo rate (deposit interest rate), alpha the lending interest degree at the same level — 5.75%.

Saudi Arabian financial antecedent has contour personalized its reverse repo rate, while the repo rate remains at 5.5%.