Most Gulf Banks Cut Rates; Kuwait Holds

After the U.S. Federal Reserve’s 25 basis-point cut — a decision that drew two dissents and prompted Chair Jerome Powell to say a further December cut was not guaranteed — most Gulf central banks mirrored the move while Kuwait held rates steady. Saudi Arabia cut its repo rate to 4.50% and its reverse repo to 4.00%. Qatar, Bahrain and Oman each trimmed key rates by 25 basis points to align with the Fed. The Central Bank of the UAE lowered its Overnight Deposit Facility base rate to 3.90% (its second cut this year) and left the borrowing rate 50 basis points above the base. Authorities said the coordinated easing should lower borrowing costs, help stimulate non-oil growth (including real estate, tourism and manufacturing) and support financial stability and capital flows across the Gulf.