The central bank raises the interest rate by 0.75%

Yesterday evening, the Central Bank of the country raised the main interest rate by 75 basis points, equivalent to 0.75%, in conjunction with a similar decision announced by the US Federal Reserve due to the policy of linking the dirham to the dollar.

This is the eighth time in a row since the beginning of this year that the Federal Reserve has raised interest rates, with yesterday raising it to its highest level since 2008, where it currently reaches a range of 3-3.25%, in order to control the rising inflation in the United States of America while global markets await A new raise next November, according to the Federal Reserve.

In a detailed statement, the Central Bank said, "The base rate on the overnight deposit facilities has been raised by 75 basis points from 2.4% to 3.15%, as of today, Thursday.

This decision comes after the Federal Reserve announced an increase in the interest rate on reserve balances by 75 basis points in its meeting held yesterday, Wednesday, and the Central Bank decided to keep the rate that applies to borrowing short-term liquidity from the Central Bank through all existing credit facilities at 50 basis points above the base rate.

The base rate, which is linked to the interest rate on reserve balances approved by the US Federal Reserve, determines the general position of the monetary policy of the Central Bank and provides a minimum effective interest rate for overnight money market rates in the country.

In the Gulf, the central banks also raised interest rates in Saudi Arabia, Qatar and Bahrain by 75 basis points, while the Central Bank of Kuwait raised by a quarter point.  

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