Introduction

The central banks of the UAE and Qatar supported the decision of the US Federal Reserve to fix interest rates in line with market expectations.

US Federal Reserve’s Decision

On Wednesday, the US Federal Reserve’s Open Market Committee decided to leave the federal funds rate unchanged, in line with market expectations.

Central Bank of Qatar’s Decision

And the Central Bank of Qatar has announced that the bank’s current interest rates will remain unchanged to keep pace with the movements of the US Federal Reserve, which has fixed the interest rate.

The Bank of Qatar said the deposit interest rate was fixed at 5.5%, the loan rate at 6% and the buyback rate at 5.75%.

UAE Central Bank’s Decision

For its part, the UAE Central Bank has decided to keep its base rate on overnight deposits unchanged at 5.15% as of Thursday, June 15, 2023.

The UAE Central Bank has decided to keep the rate, which applies to borrowing short-term liquidity from the Central Bank through all existing credit facilities, at 50 basis points above the base price.

The base rate, which is linked to the interest rate on the balance of reserves approved by the US Federal Reserve, determines the overall position of the central bank’s monetary policy; It also provides the minimum effective interest rate for overnight money market rates in the UAE.