Central Bank of Bahrain raises key interest rates

Manama : The Central Bank of Bahrain (CBB) has decided yesterday to raise its key policy interest rate with immediate effect.

CBB’s key policy interest rate on the one-week deposit facility has been raised from 1.00 per cent to 1.25 pc.

The CBB has also decided to increase the overnight deposit rate from 0.75 pc to 1.00 pc and adjust both the one-month deposit rate from 1.50 pc to 1.75 pc , and the lending rate from 2.75pc to 3.00pc.

Meanwhile, the US Federal Reserve yesterday raised the benchmark interest rate a quarter point, noting that inflation is moving closer to the central bank’s two percent target.

The Fed’s policy-setting Federal Open Market Committee (FOMC) voted to raise the key federal funds rate to a range of 0.75-1.0 pc. The FOMC said it expects economic improvements to continue with only “gradual adjustments” in the policy interest rate.