CBB Cuts Interest Rates by 75 Basis Points

MANAMA — The Central Bank of Bahrain (CBB) decided on Thursday to cut its key policy interest rate by 75 basis points, after reviewing the decision taken by the Federal Open Market Committee on 16 December 2008.

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By (Staff Report)

Published: Sat 20 Dec 2008, 1:03 AM

Last updated: Sun 5 Apr 2015, 11:28 AM

Effective immediately, the CBB’s rate on the one-week deposit facility is 0.75 per cent down from 1.50 per cent previously.

The CBB’s lending standing facilities remain available for its banks at their initiative to assist them to meet their liquidity needs. The CBB has decided to adjust the rate on the overnight deposit facility to 0.25 per cent, from 1 per cent previously.

It has also decided to adjust the Repo lending rate through which it charges banks for the use of these facilities. The CBB has reduced the repo and lending rates to 2.75 per cent from 3.50 per cent previously.

The adjustment to the deposit and lending rates represents a continuation of measures taken by the CBB to ensure the smooth functioning of the money markets in Bahrain, and in accordance with the policy of pegging the Bahrain Dinar to the US dollar.

The CBB continues to monitor global and local market developments closely and will consider additional measures to ensure the normal functioning of Bahraini markets should the circumstances require.

(Staff Report)

Published: Sat 20 Dec 2008, 1:03 AM

Last updated: Sun 5 Apr 2015, 11:28 AM

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