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)
© Thomson Reuters 2009 All rights reserved
Dubai Debt Fears
Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets. Full Article | Slideshow
