Gulf Central Banks Hold Interest Rates Unchanged in Tandem With Fed

Central banks in the Gulf including Qatar and the United Arab Emirates followed the Federal Reserve’s decision to keep interest rates unchanged in order to protect their currencies’ peg against the US dollar.

The majority of central banks in the GCC mimic the Fed’s rate moves due to the greenback-pegging policy, with Kuwait the only exception in the six-member economic bloc as its dinar is linked to a basket of currencies.