Central Bank of Bahrain cuts interest rates following US Fed lead
MANAMA, 5 hours, 45 minutes ago
In a major move, the Central Bank of Bahrain today (December 18) cut its overnight deposit rate by 25 basis points. The move followed the US Federal Reserve's decision to cut interest rates by 25 bps.
In its statement, CBB announced its decision to cut the overnight deposit rate by 25 basis points from 5.25% to 5.00%, effective December 19, 2024.
This decision comes as part of the measures taken by CBB in maintaining monetary and financial stability in the Kingdom of Bahrain in light of global financial market developments, it stated.
This CBB action comes close on the heels of the lowering of its one-week deposit facility by 25 bps to 5.5% last month following the US Federal Reserve’s 50 basis point cut to its benchmark rate, now at 4.5%-4.75%. The CBB had also then lowered the overnight deposit rate by 25 basis points to 5.25%.
These measures aim to uphold Bahrain’s monetary and financial stability amidst global economic shifts.
Bahrain typically follows the Fed’s moves due to its currency peg, maintaining a fixed exchange rate of 0.376 Bahraini dinars per US dollar.-TradeArabia News Service
