Bahrain Slashes Key Rates By 75 Basis Points - Dec 18, 2008

Bahrain, which pegs its currency to the U.S. dollar, slashed all its key interest rates by 75 basis points on Thursday as it mirrored a move by the U.S. Federal Reserve, the central bank said. The Gulf Arab state lowered the overnight repurchase rate and overnight secured rate to 2.75 percent from 3.5 percent. It also reduced its one-week deposit rate to 0.75 percent from 1.5 percent and its overnight deposit rate to 0.75 percent from 1 percent. The U.S. Federal Reserve chopped its interbank federal funds rate to a range of zero to 0.25 percent, a record low.