QCB Raises Deposit Interest Rate by 25 Basis Points

Doha, June 14 (QNA) - Qatar Central Bank (QCB) on Thursday announced a 25 base points increase on the QCB Deposit Rate (QCBDR), as of today to be 2 percent, on basis of local and international economic data. QCB's decision to raise QCBDR comes in line with the US Federal Reserve's decision, announced today, raising the key interest rate by 25 basis points, amid expectations that the Federal Reserve will raise interest rates two more times this year. The Qatari riyal is pegged to the US dollar at a fixed exchange rate since 1980. The Federal Open Market Committee (FOMC), the monetary policy maker of the Federal Reserve, said in a unanimous statement at the end of a two-day meeting that "labor market has continued to strengthen and that economic activity has been rising at a solid rate". The Federal Reserve has raised interest rates seven times since late 2015 as the economy continue to expand and jobs grow. It has also forecast a slightly faster rate of interest rate increases in the coming months and expecting two further increases by the end of the year. (QNA)