Qatar Central Bank lowers key interest rates


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he central bank cut its overnight deposit rate to 0.75% from 1% and axed the overnight lending and repo rate to 4.5% from 5%, a day after the US Federal Reserve decided to keep the rates low for another two years.
This is the third time in a year Qatar has cut rates. Last August, the central bank had cut its deposit rate by 50 basis points but left other rates unchanged.
The QCB deposit and lending rates are announced on overnight transactions between it and local banks through the Qatar Money Market Rate Standing Facility (QMR). The QCB lending is the key rate used by the central bank to convey signals to the market, revealing adjustments to its monetary policy stance.
QCB repo operations are conducted in domestic government securities and are of two-weeks to one-month maturity. The banking regulator sets the rate and duration of the repurchase agreements while the size and time of the repurchase transactions are initiated by commercial banks