The Qatar Central Bank (QCB) announced that it raised the repo rate (QCB repo rate) by 25 basis points to 1.25%, starting from Thursday.
The QCB said in a statement that the decision was based on the "evolving domestic and international macroeconomic developments."
The repo rate, which is also known as the Repo, is the interest rate for one night, or a very short period of time for the process of buying and selling assets, such as government bonds from the central bank, where dealers purchase government bonds for a certain period and then sell them to investors for either a short period or one night, after which they purchase them the following day.
The QCB also decided to maintain the QCB deposit rate (QCBDR) at its current level of 1.00% and maintain the QCB lending rate (QCBLR) at its current level by 2.50%.
The US Federal Reserve (the US central bank) on Wednesday raised the federal funds interest rates by a quarter of a percentage point to reach 0.5%, the first time it increased rates since 2018.
The Fed attributed its decision to raise the rate to the continuous increase in inflation rates, which was further fuelled by the current war in Ukraine, and amid fuel prices reaching record levels.
According to economic reports, the improvement in the US employment rates in the recent months also prompted the Fed's decision to raise interest rates.
The QCB said in a statement that the decision was based on the "evolving domestic and international macroeconomic developments."
The repo rate, which is also known as the Repo, is the interest rate for one night, or a very short period of time for the process of buying and selling assets, such as government bonds from the central bank, where dealers purchase government bonds for a certain period and then sell them to investors for either a short period or one night, after which they purchase them the following day.
The QCB also decided to maintain the QCB deposit rate (QCBDR) at its current level of 1.00% and maintain the QCB lending rate (QCBLR) at its current level by 2.50%.
The US Federal Reserve (the US central bank) on Wednesday raised the federal funds interest rates by a quarter of a percentage point to reach 0.5%, the first time it increased rates since 2018.
The Fed attributed its decision to raise the rate to the continuous increase in inflation rates, which was further fuelled by the current war in Ukraine, and amid fuel prices reaching record levels.
According to economic reports, the improvement in the US employment rates in the recent months also prompted the Fed's decision to raise interest rates.
