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Qatar Central Bank cuts overnight deposit rate

12 August 2010

Qatar's central bank has changed its overnight deposit facility for the first time in more than two years, lowering it by 50 basis points to 1.5% while leaving other key interest rates unchanged, Reuters has reported, citing a banking source. "Lowering the lending rate will boost the economy by reducing the cost of funds, allowing banks and investors to borrow more," the CEO of a Doha-based bank said. "It will help the stock market as well, as the yield on the stock market will be higher than the deposit rate. People will start investing more money into the stock market."

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