The central banks of Saudi Arabia, Bahrain, and Qatar increased their benchmark borrowing rates following a 25 basis point increase in the US Federal Reserve’s key interest rate. Saudi Arabia’s Repurchase Agreement (Repo) rate rose 25 basis points to 5.50%, while the Reverse Repurchase Agreement (Reverse Repo) rate increased 25 basis points to 5.00%. Bahrain’s Central Bank tweeted that the one-week deposit facility rate rose to 5.75% from 5.5%, and the overnight deposit rate increased to 5.5% from 5.25%.
Meanwhile, the Central Bank of Qatar raised deposit, lending, and repo rates by 25 basis points to 5.25%, 5.75%, and 5.5%, respectively, effective on Thursday. The Central Bank of the UAE had previously raised the base rate for the Overnight Deposit Facility (ODF) by 25 basis points to 4.90% from 4.65%, effective from March 23, 2023.