IMF: Qatar monitoring capital inflows

19 Feb 2010

(MENAFN) Qatar Central Bank indicated that it has been closely monitoring capital inflows and is ready to change interest rates if needed, Reuters reported.

A recent International Monetary Fund (IMF) report said that Qatar did not join a wave of rate reductions by central banks in the region, Europe and the US during the peak of the financial crisis in 2008, as it kept its main repo rate at 5.55 percent since May, 2008.

However, the IMF warned Qatar that that it would attract speculative inflows as investors re-evaluate global risks in discussions that ended in November.

The central bank indicated that it was monitoring inflows carefully and was ready to adjust interest rates if needed, while managing credit growth with its macro-prudential instruments, the IMF report said.

In December, the bank’s deputy governor said that it is likely to keep key rates unchanged for the mean time, in order to maintain a positive differential against the US benchmark rate to avoid capital outflows.

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