THE Central Bank of Bahrain (CBB) yesterday announced its decision to maintain the overnight deposit interest rate unchanged at 4.25 per cent.
The decision comes as part of the review conducted by the CBB to maintain monetary and financial stability in Bahrain in light of global financial market developments.
Meanwhile, the Federal Reserve held the benchmark interest rate steady yesterday and policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation lodged above the US central bank’s 2pc target.
New quarterly projections showed nine Fed officials now anticipate a rate hike by the end of 2026, and an updated policy statement removed language that had been used to flag the likelihood of further reductions in borrowing costs in 2026.
Indeed, the statement, in an early sign of new Fed Chairman Kevin Warsh’s influence, removed any guidance about future rate moves altogether, with a revised format that simply stated the rate decision and reaffirmed the central bank’s intent to keep “ample reserves in the banking system.”
The shortened document, a return to a format similar to that used by former Fed Chairman Alan Greenspan, was approved by a unanimous 12-0 vote.
The statement showed other signs of Warsh’s early influence on the debate as he takes over after being appointed earlier this year by President Donald Trump with an expectation that he would deliver the rate cuts the president has demanded.
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