October 28, 2026
On Wednesday, Gulf central banks followed the example of the US Federal Reserve and decided to keep interest rates unchanged, in light of continuing inflationary pressures and anticipating developments in the global economy.
These decisions came after the Federal Reserve fixed the interest rate within a range between 3.75% and 4%, following a previous step that saw it raised by a quarter of a percentage point last September, amid existing fears of inflation.
In Doha, the Qatar Central Bank announced setting the deposit interest rate at 4.10%, lending at 4.60%, and the repurchase rate at 4.35%, following a comprehensive assessment of the current monetary policy.
For its part, the Central Bank of the Emirates decided to maintain the base rate for overnight deposit facilities at 3.90%, while the Central Bank of Bahrain announced setting the interest on overnight deposits at 4.50%.
These simultaneous measures come in light of the currencies of most Gulf Cooperation Council countries being linked to the US dollar, which makes it necessary for central banks in the region to keep pace with US monetary policy directions to maintain the stability of exchange rates and liquidity levels.
Despite the decision to fix interest rates, the economies of the Gulf countries are still facing a number of challenges and pressures related to high energy and financing costs, in addition to continuing disruptions to global supply chains.
In the same context, an analysis issued by the Japanese bank “MUFG” showed that the average weighted inflation in the Gulf Cooperation Council countries has risen to 2.7% since the beginning of 2026, compared to about 2% during the year 2025, which doubles the burdens and challenges facing the business sector and individuals alike.
