Saudi Arabia, Three Gulf Central Banks Raise Rates After Fed
- Nations match Fed rate increase of 25 basis points Wednesday
- Countries peg currencies to U.S. dollar due to energy exports
A Deep Dive Into the Fed's New Dot Plot
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The central banks of four Gulf Arab oil-exporting countries followed the U.S. Federal Reserve by raising key interest rates on Wednesday, reaffirming their commitment to the dollar peg even as economic growth slows.
The Saudi central bank raised the reverse repo rate by a quarter percentage point to 1 percent while leaving the official repurchase rate unchanged at 2 percent. Policy makers in the United Arab Emirates, Kuwait and Bahrain also raised their key policy rates by 25 basis points.