QCB Raises Deposit Interest Rate to 2.50%

Doha, December 20 (QNA) - Qatar Central Bank (QCB) announced a 25 base points increase on the QCB Deposit Rate (QCBDR), as of Thursday, to be 2.50 percent. The Central Bank said in a statement obtained by Qatar News Agency (QNA) that the decision to raise the Deposit Rate of the bank was based on local and international economic data. QCB's decision to raise QCBDR comes in line with the US Federal Reserve's (US central bank) decision, announced Wednesday, raising the key interest rate for the fourth time this year by 25 basis points. The latest quarter-point increase brings the federal funds rate to a new range of 2.25 to 2.50 percent. The Qatari riyal is pegged to the US dollar at a fixed exchange rate since 1980. Despite expectations that the US Federal Reserve will increase interest rates three more times next year and one increase in 2020, fiscal policymakers have indicated during their last meeting in Washington that they are willing to give up the planned interest rate increase in 2019, mid growing concerns about an economic slowdown and rising market volatility. (QNA)