FINANCIAL NEWS

Qatar’s CB to maintain interest rates low

05 Sep 2012

(MENAFN) The Qatar Central Bank stated that it will maintain interest rates low in order to shore up lending to the real economy, reported Khaleej Times.

The bank said that its main priority at the current time is to keep soft interest rates through proactive liquidity management, adding that global liquidity conditions might still be affected by Europe’s sovereign debt crisis which could affect investments and project funding in the Gulf country.

In last year’s April and August, the bank lowered its overnight deposit rate by a combined 75 basis points to a current level of 0.75 percent to dissuade banks from accumulating money at its accounts.

It is worth noting that the Qatari central bank issued a USD14 billion bond directly to local banks in January 2011, and in May and August, it launched monthly auctions of 91-, 182- and 273-day Treasury bills, also to sap excess money.

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