Qatar cbank lowers deposit rate after Fed cut

DUBAI, May 1 (Reuters) - Qatar, which pegs its riyal to the dollar, reduced its deposit facility rate by 25 basis points but left its benchmark lending rate unchanged on Thursday after a U.S. rate cut a day earlier.

The deposit rate fell to 2 percent from 2.25 percent, while the benchmark lending facility rate was unchanged at 5.5 percent, the central bank said in a statement. The repurchase rate was unchanged at 5.55 percent.

The Federal Reserve lowered U.S. interest rates on Wednesday by a quarter percentage point, as expected, and hinted the move could be the last in a series meant to buffer the economy from a credit crunch and housing downturn. [ID:nN30479986]

The Fed has slashed rates seven times by a total of 3.25 percent since Sept. 18. Dollar pegs compell Gulf states to track the Fed to maintain the relative value of their currencies.

(Reporting by Daliah Merzaban; Editing by Summer Said)