After the U.S. Federal Reserve hiked its benchmark interest rate, the central banks of Saudi Arabia and Bahrain followed suit with their respective increases June 13, while Kuwait's central bank kept its rate on hold.

The Saudi Arabian Monetary Authority raised its repo rate to 250 basis points from 225 basis points and its reverse repo rate to 200 basis points from 175 basis points. The central bank said the hike seeks to preserve stable domestic monetary and financial conditions on account of evolving global market developments.

The Central Bank of Bahrain also raised its interest rate on the one-week deposit facility to 2.25% from 2% and the overnight deport rate to 2% from 1.75%, according to Reuters. The one-month deposit rate and the lending rate were also raised to 3% from 2.65% and to 4% from 3.75%, respectively.

Meanwhile, the Central Bank of Kuwait decided to keep its discount rate on hold at 3% "based on thorough data analysis."

The Fed earlier raised its target range for the federal funds rate by 25 basis points to 1.75% to 2%, the second increase this year, and signaled up to four rate hikes in 2018.