After the Fed’s decision, five Gulf central banks raise interest rates

For his part, the Central Bank of the UAE decided to raise the base rate on overnight deposit facilities by 25 basis points, from 3.65% to 3.9%, effective Thursday.

The Central Bank of Oman and the Central Bank of Bahrain also each decided to raise interest rates by 25 basis points, while Qatar also decided to raise its interest rate.

The US Federal Reserve (the US central bank) raised its main interest rate on Wednesday for the first time in more than three years.

The decision came as the central bank battles stubborn inflation fueled by rising energy prices. Some Wall Street analysts also expect the Fed to raise interest rates one or two more times in the coming months.