trending Market Intelligence /marketintelligence/en/news-insights/trending/__KPNYJ4y7Y6YNkj2KQXMQ2 content esgSubNav
In This List

Middle Eastern, Asian central banks lower rates after Fed decision

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Middle Eastern, Asian central banks lower rates after Fed decision

A number of Middle Eastern and Asian central banks eased their monetary policies in wake of the U.S. Federal Reserve's widely expected rate cut announced Sept. 18.

The Saudi Arabian Monetary Authority lowered its repo and reverse repo rates by 25 basis points each to 2.50% and 2.00%, respectively, "amid evolving developments in global financial markets."

The Central Bank of Jordan cut its base rate by 25 basis points to 4.25% to stimulate economic growth, while the Central Bank of the United Arab Emirates also reduced rates by the same, Reuters reported.

The Qatar Central Bank lowered its deposit, lending and repurchase rates by 25 basis points each to 2.25%, 4.5% and 2.25%, respectively.

The Central Bank of Kuwait, however, maintained its policy rate at 3%, as it attempts to maintain the attractiveness of the local currency as a "reliable store of domestic savings." Kuwait lifted its discount rate to 3% from 2.75% in March 2018.

Meanwhile, the Hong Kong Monetary Authority cut its base rate by 25 basis points to 2.25%, and the Bank Indonesia reduced its seven-day reverse repo rate by 25 basis points to 5.25%. Indonesia's deposit and lending facility rates were also trimmed by 25 basis points.

The Central Bank of the Republic of China (Taiwan), however, kept the discount rate unchanged at 1.375%.

The Fed lowered its benchmark rate by 25 basis points Sept. 18 in a divided decision and Chairman Jerome Powell said the U.S. central bank is prepared to take an aggressive approach if the economy weakens further.