Qatar cuts deposit rate by 65 bps
Doha, September 20, 2007
Qatar, which pegs its currency to the US dollar, cut its over-night deposit facility rate by 65 basis points to 4.5 percent on Thursday.
The move follows an interest rate cut in the United States this week.
Qatar, holder of the world's third-largest natural gas reserves, left its benchmark repurchase rate unchanged at 5.55 percent, the central bank said.
The deposit facility rate was 5.15 percent on Wednesday.
Kuwait and the UAE cut interest rates on Wednesday, following a 50 basis point reduction by the US Federal Reserve, raising the prospect Gulf Arab economic growth and inflation may accelerate.
Inflation in Qatar rose to a record 14.81 percent at the end of March. Inflation in June was 12.8 percent.
Qatar also left its over-night lending facility rate unchanged at 5.50 percent, the central bank said. - Reuters