Bahrain's central bank said on Wednesday (December 14) that it has decided to raise the interest rate on its overnight deposit facility, its key policy interest rate, by 25 bps from 0.50 per cent to 0.75 per cent with immediate effect.

The key policy interest rate on the one-week deposit facility was raised to 1 per cent from 0.75 per cent, while the central bank said it was adjusting both the one-month deposit rate from 1.25 per cent to 1.50 per cent, and the lending rate from 2.5 per cent to 2.75 per cent.

The CBB announcement came shortly after the US Federal Reserve raised its benchmark interest rate for the first time in a year and signalled that rates could continue to rise next year more quickly than expected.-TradeArabia News Service