Qatar Central Bank Cuts Its Deposit Interest Rates by 25 Basis Points

31 October 2019

Qatar Central Bank (QCB) announced today a cut in its depository interest rates by 25bp to 2.0%. The Bank has also reduced the lending interest rate by 25bp to 4.25% and reduced its REPO rate by 25b to 2.0%.

According to a statement issued by Qatar Central Bank the decision to reduce the Bank’s: depository interest rate, lending interest rate and repurchase interest rate (repo) was based on the local and international economic outputs.

Qatar Central Bank’s decision also coincides with the US Federal Reserve’s decision of yesterday on the cut of the interest rates by quarter percentage point to range between 1.5 % and 1.75%, a step taken for the third time this year to match with the expectations.

The US Central Bank said earlier in a statement pertaining to its decision taken that the reduction in the interest rates comes in light of weak investments and exports conditions and inflation rates below the target percentage of 2%.

Most countries whose currencies are pegged to the US dollar normally raise or reduce their interest rate in line with the US Federal Reserve’s decision. Qatari Riyal is pegged to the US Dollar at a fixed rate since 1980.