(Following item has been updated with Bahrain and Kuwait)
The central banks of Saudi Arabia, Bahrain and Kuwait lowered their benchmark interest rates by 25 basis points, tracking their U.S. Federal Reserve's similar-sized cut in its federal funds rate.
The Saudi Arabian Monetary Authority (SAMA) cut its repurchase rate and the reverse repo rate by 25 basis points to 2.25 percent and 1.75 percent, respectively.
It is the third cut by SAMA this year, mirroring the Fed's three rate cuts in July, September and today.
The Central Bank of Bahrain (CBB) cut its key policy rate, the one-week deposit facility rate, to 2.25 percent, the overnight deposit rate to 2.0 percent, the one-month deposit rate to 2.60 percent and the lending rate to 4.0 percent.
It is only CBB's second rate cut this year, with the rate being cut in July and today, but not in September.
Both Saudi Arabia and Bahrain peg their currencies to the U.S. dollar while Kuwait's dinar is linked to a basket of currencies.
The Central Bank of Kuwait (CBK) lowered its discount rate by 25 basis points to 2.75 percent, its first change in rates since a hike in March 2018. It is the first rate cut since October 2012.
CBK said the decision fulfills the dual objective of promoting non-inflationary economic growth and ensuring the attractiveness of the national currency.
"A healthy margin in favor of the KWD against the USD allowed for a discount rate cut that maintains the attractiveness of the national currency," Governor Mohammad Y. Al-Hashel said, adding the lower lending cost should drive credit take-off, motivate demand and support non-oil growth.
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