The United Arab Emirates and Qatar raised their respective key interest rates following the U.S. Federal Reserve's decision to hike its own benchmark rate.
The Central Bank of the United Arab Emirates hiked the rate on its certificates of deposits by 25 basis points to 2.25%. The repo rate applicable to borrowing short-term liquidity from the bank against certificates of deposits was also raised by 25 basis points to 2.25%.
The Qatar Central Bank lifted its deposit rate by 25 basis points to 2.00%.
On June 13, the U.S. Federal Reserve raised its target range for the federal funds rate to 2% from 1.75% and signaled that it may take a faster path on rate hikes this year.