Bahrain Central Bank Hikes Key Rate

2026-09-16 19:30 By Isabela Couto 1 min. read

The Central Bank of Bahrain raised its one-week deposit facility rate by 25 bps to 4.75% in September 2026, mirroring the Federal Reserve’s decision.

The move followed the Fed’s announcement that it would raise the target range for the federal funds rate by 25 bps to 3.75%-4%, while a majority of FOMC members projected another hike this year.

Bahrain typically aligns its interest rate policy with that of the Fed due to its currency peg, maintaining an exchange rate of 0.376 Bahraini dinars per US dollar.



News Stream
Bahrain Central Bank Hikes Key Rate
The Central Bank of Bahrain raised its one-week deposit facility rate by 25 bps to 4.75% in September 2026, mirroring the Federal Reserve’s decision. The move followed the Fed’s announcement that it would raise the target range for the federal funds rate by 25 bps to 3.75%-4%, while a majority of FOMC members projected another hike this year. Bahrain typically aligns its interest rate policy with that of the Fed due to its currency peg, maintaining an exchange rate of 0.376 Bahraini dinars per US dollar.
2026-09-16
Bahrain Cuts Rates by 25 bps, Follows Fed
The Central Bank of Bahrain reduced its one-week deposit facility rate by 25 basis points to 4.5% in December 2025, mirroring the recent rate cut by the US Federal Reserve. These actions aim to support monetary and financial stability in Bahrain amid global financial market shifts. Bahrain typically aligns its interest rate policy with the Fed due to its currency peg, maintaining an exchange rate of 0.376 Bahraini dinars to the US dollar.
2025-12-10
Bahrain Follows Fed, Cuts 25bps
The Central Bank of Bahrain reduced its one-week deposit facility rate by 25 basis points to 4.75% in October 2025, mirroring the recent rate cut by the US Federal Reserve. These actions aim to support monetary and financial stability in Bahrain amid global financial market shifts. Bahrain typically aligns its interest rate policy with the Fed due to its currency peg, maintaining an exchange rate of 0.376 Bahraini dinars to the US dollar.
2025-10-29