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Gulf Central Banks Cut Rates by 25 Basis Points After Fed Eases

The UAE’s base rate now stands at 3.65%, reflecting the region’s tight policy link to the Fed.

Overview

  • The Federal Reserve lowered its policy rate by 25 basis points to a 3.50%–3.75% range in a third straight cut that drew three dissents.
  • The Central Bank of the UAE reduced the overnight deposit base rate from 3.90% to 3.65% effective December 11 and kept short‑term borrowing at 50 basis points above the base.
  • Bahrain, Qatar, Kuwait, and Oman each announced 25‑basis‑point reductions to their key rates the same day.
  • Oman’s central bank set its repo rate at 4.25% following the cut, according to the Oman News Agency.
  • Gulf authorities framed their moves as direct responses to the Fed decision, reflecting the region’s dollar‑linked policy transmission.