Gulf central banks increase rates in line with Fed
Five banks raise rates 75bp, while Kuwait orders 25bp increase due to different currency peg
Six central banks in the Persian Gulf region raised their policy rates on July 27, following the US’s 75 basis point increase that day.
Five of them – Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates – followed the Fed in increasing their rates by 75bp.
The exception was Kuwait, the only country of the six-member Gulf Co-operation Council that does not peg its currency directly to the US dollar. Kuwait ties its currency to an undisclosed basket of currencies, meaning it does not
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