Central banks in the Gulf region cut key interest rates by 25 basis points on Wednesday, following the US Federal Reserve's move to cut interest rates by 25 basis points. Gulf Cooperation Council oil and gas exporters generally follow the Federal Reserve's interest rate action because most regional currencies are pegged to the US dollar. Only the Kuwaiti dinar is linked to a basket of currencies, including the United States dollar. Saudi Arabia, the region's largest economy, cut the repurchase agreement rate by 25 basis points to 4.25% and the reverse repurchase rate to 3.75%. The UAE's central bank lowered the target interest rate for its overnight deposit mechanism to 3.65%, effective Thursday. Central banks in Qatar, Bahrain, Kuwait, and Oman also cut interest rates by 25 basis points.

Central banks in the Gulf region cut key interest rates by 25 basis points on Wednesday, following the US Federal Reserve's move to cut interest rates by 25 basis points. Gulf Cooperation Council oil and gas exporters generally follow the Federal Reserve's interest rate action because most regional currencies are pegged to the US dollar. Only the Kuwaiti dinar is linked to a basket of currencies, including the United States dollar. Saudi Arabia, the region's largest economy, cut the repurchase agreement rate by 25 basis points to 4.25% and the reverse repurchase rate to 3.75%. The UAE's central bank lowered the target interest rate for its overnight deposit mechanism to 3.65%, effective Thursday. Central banks in Qatar, Bahrain, Kuwait, and Oman also cut interest rates by 25 basis points.