Bahrain raises key interest rate by 75 basis points

Manama: The Central Bank of Bahrain said on Wednesday it raised its key policy interest rate, on its one-week deposit facility, by 75 basis points (bps) to 2.5%, moving in lockstep with the U.S. Federal Reserve's hike as the Bahraini dinar is pegged to the dollar.

CBB also hiked by 75 bps the overnight deposit rate to 2.25%, the four-week deposit rate to 3.25% and the lending rate to 3.75%.

The CBB continues to monitor global and local market developments closely in order to take any further necessary actions to maintain monetary and financial stability in the Kingdom.