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GCC central banks align with Fed to keep rates steady

The Central Bank of the UAE. In December 2024, the GCC central banks cut interest rates by 25 basis points, mirroring the Fed's move Wam
The Central Bank of the UAE. In December 2024, the GCC central banks cut interest rates by 25 basis points, mirroring the Fed's move

The central banks in the six-nation Gulf Cooperation Council (GCC) have aligned with the US Federal Reserve to hold their interest rates steady.

The Central Bank of the UAE will maintain its base rate on overnight deposit facility (ODF) at 4.4 percent, the UAE state-run Wam news agency reported.

No other central banks in the GCC released any statement. In December 2024, the GCC central banks cut rates by 25 basis points, mirroring the Fed’s move.

Saudi Arabia’s repurchase (repo) and reverse repo rates are 5 percent and 4.5 percent, respectively.  

Bahrain’s overnight deposit rate is 5 percent, while Qatar’s repo, lending and deposit rates are at 4.8 percent, 5.1 percent and 4.6 percent, respectively. 

Oman’s repo rate is also 5 percent.

On Wednesday, the Federal Reserve chair Jerome Powell said there was “no rush” to cut rates again.

“We do not need to be in a hurry to adjust our policy stance. The monetary policy is well-positioned for the challenges at hand,” he told a press conference.

The Fed cut rates three times last year, lowering the benchmark rate by a full percentage point.