Qatar Central Bank Cuts Lending Rate by 25 Basis Points

Doha, August 01 (QNA) - Taking into account the evolving domestic and international macroeconomic developments, Qatar Central Bank (QCB) decided on Thursday to reduce the QCB lending rate (QCBLR) by 25 basis points (bps) to 4.75%. The QCB decision comes in line with the US Federal Reserve's (US central bank) move on Wednesday to cut the benchmark overnight lending rate for the first time since 2008 by a quarter point to a range of 2.00% to 2.25%. Most countries with US dollar pegged currencies cut or raise interest rates in line with a decision by the US Federal Reserve. The Qatari riyal is pegged to the US dollar at a fixed exchange rate since 1980. Most GCC countries cut interest rates in line with the Federal Reserve's decision, while others decided to keep the interest rate unchanged. In its statement Wednesday, the US Federal Reserve said that in light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Federal Open Market Committee decided to lower the target range for the federal funds rate to 2 to 2-1/4 percent, adding that this action supports the Committee's view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain. (QNA)