Kuwait holds as Saudi, Qatar, UAE, HK, Macau raise rates

June 14, 2018

By CentralBankNews.info
     Most countries that link their currency to the U.S. dollar raised interest rates in the wake of the Federal Reserve’s 25-basis-point rate hike with the exception of Kuwait.
     Hong Kong’s de-facto central bank, the Hong Kong Monetary Authority (HKMA), raised its base rate by 25 basis points to 2.25 percent while the Monetary Authority of Macau (AMCM), whose pataca is linked to the Hong Kong dollar, raised its base rate on the discount window by 25 points to 2.25 percent.
     The Saudi Arabian Monetary Agency (SAMA) raised the rate on both its repurchase and reverse repurchase agreements by 25 basis points to 2.50 percent and 2.0 percent, respectively, while the Qatar Central Bank (QCB) raised its deposit rate (QCBDR by 25 points to 2.0 percent and the Central Bank of the UAE raised its deposit and repo rates by the same amount.
     However, the Central Bank of Kuwait (CBK) said in a statement that it was maintaining its discount rate at 3.0 percent “based on thorough data analysis.”
     So far there has been no statements of rate changes by the Central Bank of Bahrain, whose one-week deposit rate typically tracks U.S. rates, nor by the Central Bank of Oman.
     The Central Bank of Jordan (CBJ), whose dinar has been fixed to the U.S. dollar since 1995, has also not issued any statement.
      In March, when the Fed previously raised its rate, CBJ raised its rates on March 25 following the Fed’s hike on March 21.

      www.CentralBankNews.info

 

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