Bahrain cbank lowers deposit rates after Fed cut

DUBAI, May 1 (Reuters) - Bahrain, which pegs its dinar to the dollar, lowered its one-week deposit rate by 25 basis points on Thursday and left its lending rates on hold after a U.S. rate cut a day earlier, the central bank CBOC said.

The Gulf Arab state reduced the one-week deposit rate to 2 percent from 2.25 percent and cut its over-night deposit rate to 1.5 percent from 1.75 percent.

It left the overnight repurchase rate and the overnight secured rate unchanged at 5.25 percent.

The Federal Reserve lowered U.S. interest rates 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)