Dubai - Sputnik . The central bank has decided to raise the rate of repurchase agreements to 275 basis points (2.75 percent) from 250 basis points and the decision will have immediate effect, the statement added.
The decision came after the US Federal Reserve raised interest rates by 25 basis points.
On the other hand, the Central Bank of UAE decided to raise the key interest rates applied to certificates of deposit by 25 basis points as of Thursday, coinciding with a similar raise by the Federal Reserve yesterday, according to the newspaper "Emirates Today."
The UAE central bank said in a statement that the move was in line with rising interest rates on the US dollar, following the Federal Reserve's decision to raise the federal funds rate by 25 basis points at its meeting today.
The UAE Central Bank has also decided to raise the repo rate, which applies to short-term liquidity borrowings from the Central Bank, with a deposit of 25 basis points.
In the same context, the Bahraini central bank raised interest rates by 25 basis points. The CBB said it raised its deposit rates for one week to 2.50 percent from 2.25 percent.
The bank also raised the overnight deposit rate to 2.25 percent from 2 percent, the 1-month deposit rate to 3.25 percent from 3 percent, and the lending rate to 4.25 percent from 4 percent.
The central bank kept interest rates after the Federal Reserve's decision on the main discount rate unchanged at 3 percent.
"As part of the CBK's keenness to promote the non-inflationary economic growth of the non-oil sectors and to consolidate the competitiveness and attractiveness of the national currency as a conduit for domestic savings, the Central Bank of Kuwait (CBK) has established strong fundamentals of monetary policy," the CBK said in a statement. The Central Bank of Kuwait to maintain its discount rate unchanged from its current level of 3.0 percent and continue to move using available monetary policy instruments and procedures to enhance the attractiveness and competitiveness of the national currency.
The decision came after the Fed decided to raise interest rates by 25 basis points to a range of 2 - 2.25 percent.