The Central Bank of Bahrain (CBB) said it has raised its key policy interest rate by 25 basis points. The move comes following the US Federal Reserve decision to raise its target range for the federal funds interest rate.

Announcing the key decision, CBB said  the policy interest rate for the one-week deposit facility has been hiked from 2 per cent to 2.25 per cent.

The kingdom's central bank has also decided to increase the overnight deposit rate from 1.75 per cent to 2 per cent and adjust both the one-month deposit rate from 2.65 per cent to 3 per cent, and the lending rate from 3.75 per cent to 4 per cent.-TradeArabia News Service