FX.co ★ Bahrain Cuts Rates by 25 bps, Follows Fed

In December 2025, the Central Bank of Bahrain lowered its one-week deposit facility rate by 25 basis points to 4.5%, following a similar rate reduction by the US Federal Reserve. This strategic move is intended to bolster monetary and financial stability within Bahrain in response to worldwide fluctuations in financial markets. Given that Bahrain pegs its currency to the U.S. dollar, maintaining an exchange rate of 0.376 Bahraini dinars per U.S. dollar, the country typically synchronizes its interest rate policy with that of the Federal Reserve.