Central banks across the Gulf region lowered key interest rates by 25 basis points on Wednesday, mirroring the U.S. Federal Reserve's 25 basis point rate reduction. Oil and gas-exporting members of the Gulf Cooperation Council (GCC) typically align their monetary policy with the Fed, as most regional currencies are pegged to the U.S. dollar—except for Kuwait, whose dinar is linked to a basket of currencies including the dollar.

Saudi Arabia, the region's largest economy, cut its repo rate by 25 basis points to 4.25% and reduced its reverse repo rate to 3.75%. The UAE central bank lowered its benchmark overnight deposit facility rate to 3.65%, effective Thursday. Qatar, Bahrain, Kuwait, and Oman also implemented 25 basis point rate cuts.