Central Bank of Bahrain Cuts Key Rate by 50 Basis Points to 5.50%, Tracking Fed Move

The Central Bank of Bahrain cut its key interest rate by 50 basis points to 5.50% on Wednesday, matching the move announced hours earlier by the United States Federal Reserve. The Bahraini dinar is pegged to the US dollar.

The CBB did not issue detailed commentary on the domestic economic outlook in its announcement.

OTHER GULF RATE CUTS

Saudi Arabia and the United Arab Emirates also announced rate reductions of 50 basis points on the same day.

The CBB did not signal a specific timetable for any further adjustments, indicating that subsequent decisions would continue to be guided by US monetary policy developments and by prevailing domestic economic conditions in Bahrain.