GCC Central Banks Cut Interest Rates After US Fed Move
Central banks in the Gulf Cooperation Council (GCC) cut their main interest rates by 25 basis points (0.25%) after the US Federal Reserve lowered its own rates on Wednesday.
GCC rate cuts
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Saudi Arabia (SAMA): Repo rate reduced to 4.75% and reverse repo rate to 4.25%.
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UAE (CBUAE): Base rate on overnight deposits cut to 4.15%.
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Qatar: Deposit rate set at 4.35%, lending rate at 4.85%, and repo rate at 4.6%.
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Bahrain: Overnight interest rate cut to 4.75%.
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Kuwait: Discount rate reduced to 3.75%.
US Fed decision
The Federal Reserve cut rates by 25 basis points after pressure from President Donald Trump. The Federal Open Market Committee (FOMC) voted evenly (11-11) to bring the target range down to 4%–4.25% from 4.25%–4.5%, where it had stayed since December.
The Fed signaled that up to two more rate cuts could come before 2026 because of worries about the job market.
Fed Chair Jerome Powell said last month that the strong labor market lets the Fed move carefully. He added that the US economy is still solid but warned that tariffs could push inflation higher.
What’s next?
According to the CME FedWatch tool, there is an 86.6% chance of another 25-basis-point cut in October, and a small 1.2% chance of a bigger 50-basis-point cut.
Published: 18th September 2025
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