Qatar Central Bank announced on 16 September that it was raising its three principal policy rates by 25 basis points. The deposit rate increased to 4.10%, the repo rate to 4.35% and the lending rate to 4.60%. Gulf Times reported the resulting levels from a central-bank statement, while Reuters reported the 25-basis-point move. The decision followed an increase by the US Federal Reserve.
Qatar’s exchange-rate framework links the riyal to the US dollar, making Federal Reserve decisions important for domestic monetary conditions. Several Gulf central banks adjusted rates after the US move. Kuwait was the only GCC central bank to hold its rates.
THREE INSTRUMENTS MOVED TOGETHER
The deposit rate sets the return available to banks placing funds with the central bank. The lending and repo rates influence the price and availability of central-bank liquidity. Raising all three instruments by the same amount preserved the spacing between the published rates.
FED MOVE DROVE GULF HIKES
The Federal Reserve raised its target range by 25 basis points to 3.75%–4.00% on 16 September, its first increase since 2023.
Saudi Arabia, the UAE, Bahrain and Oman also raised rates after the Fed decision.