FX.co ★ Bahrain Central Bank Hikes Key Rate

In September 2026, the Central Bank of Bahrain raised its one-week deposit facility rate by 25 basis points to 4.75%, in line with the US Federal Reserve’s latest move. The decision came after the Fed increased the target range for the federal funds rate by 25 basis points to 3.75%–4.00%, with most FOMC members signaling the likelihood of an additional rate hike later in the year. Bahrain generally tracks US interest rate decisions because its currency is pegged to the US dollar, maintaining a fixed exchange rate of 0.376 Bahraini dinars per dollar.