The Qatar Central Bank (QCB) announced on Monday that it reduced its deposit rate (QCBDR) by 50 bps to 1.00%, lending rate (QCBLR) by 100bps to 2.50%, and the QCB repurchase rate (Repo) by 50 bps to 1.00%.
In a press release issued on Monday, the QCB said that the decision to reduce its deposit rate, lending rate and the repurchase rate is based on the evolving domestic and international macroeconomic developments.
The QCB's decision comes in line with the US Federal Reserve's decision announced on Sunday to cut interest rate by a quarter-point for the second time in less than two weeks, in another emergency step to help support the US economy in addressing the repercussions of the coronavirus outbreak. The US Federal Reserve said in a statement that it would cut its target interest rate to a range of 0 to 0.25%
The US Federal Reserve had already cut interest rates by half a percentage point after an emergency meeting on March 3. That had been the first rate cut outside of a regularly scheduled policy meeting since the financial crisis in 2008.
Most countries with currencies pegged to the US dollar hike and lower interest rates with the Fed. The Qatari riyal has been pegged to the US dollar since 1980.
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