Gulf states cut key interest rates after Fed's move

Several Gulf countries have followed the U.S. Federal Reserve, cutting interest rates by 25 basis points for the first time this year.

Transcript

00:00Several Arab Gulf states have followed the U.S. Federal Reserve,

00:03cutting interest rates for the first time this year.

00:07The UAE, Saudi Arabia, Bahrain, Qatar, Kuwait and Oman

00:11all lowered their benchmark rates by a quarter point

00:14just after the Fed made the same move.

00:19The Fed's move ends nearly a year of holding steady on rates.

00:24Policymakers in the Gulf typically follow Washington's lead

00:27since their currencies are pegged to the U.S. dollar.

00:31Lower borrowing costs are expected to give a boost to the region's housing market,

00:35especially for mortgages and property loans.

00:38Fed officials say two more rate cuts could still be on the table before the year is out.