Feb 2, 2023

and now with the details Jeddah - Yasmine El Tohamy - RIYADH: The Saudi Central Bank has increased its interest rate by 25 basis points to 5.25 percent, echoing Wednesday’s move by the US Federal Reserve to curb inflation. A statement from the bank, also known as SAMA, noted its Reverse Repo rate has also increased to 4.75 percent. Inflation is on the rise in the Kingdom, with the annual rate rising to 3.3 percent in December, up from 2.9 percent in November. The Fed’s quarter-point interest rate hike follows months of larger increases, as it hiked 50 basis points in December, and 75 basis points in November, September, July and June. Despite recent signs of a slow down in the US economy, prices are running at their highest level since the early 1980s. While the US Central Bank’s decision was driven by its desire to lower high inflation, this played a part in driving the Gulf region’s monetary policy, as most of the region’s currencies are pegged to the dollar. Following the US Fed’s decision, regional central banks also swung into action to raise their interest rates – although Qatar chose to hold. The UAE's central bank increased its base rate to 4.65 percent, effective on Thursday, while the Central Bank of Oman hiked its Repo rate to reach 5.25 percent. Bahrain also raised its main rate by 25 basis points, with its one-week deposit facility rate rising to 5.5 percent, while the overnight deposit rate hit 5.25 percent. Qatar’s Central Bank said in a press release Wednesday that it would keep its rates unchanged, keeping its deposit rate at 5 percent, its lending rate at 5.5 percent, and its repo rates at 5.25 percent. As it was predicted that the country would mirror the Fed in early 2023 by the credit ratings agency Fitch in a report last month, this decision came somewhat as a surprise. The Central Bank of Kuwait, which raised its interest rate by 50 basis points last month, often acts separately and does not necessarily follow the Fed’s hikes. In addition, the Central Bank of Egypt is forecast to raise its overnight interest rates by 150 basis points at its regular monetary policy committee meeting on Thursday, a Reuters poll showed last Monday. The CBE increased its interest rates by an unprecedented 800 basis points over the last year alone, and has been involved in a constant series of currency devaluations. A poll of 13 analysts anticipated the bank to increase its deposit rate to 17.75 percent and its lending rate to 18.75 percent. These were the details of the news Saudi-based AJA Pharma and the UAE’s Bioventure agree deal to license and supply new pharmaceuticals for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new. It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.