Most Gulf markets in red after Fed minutes signal caution on rates

BENGALURU: Most stock markets in the Gulf ended lower on Thursday a day after minutes from the last Federal Open Market Committee meeting bolstered the view that interest rate cuts will now be slower in coming than previously expected.

The bulk of policymakers at the Federal Reserve’s last meeting were concerned about the risks of cutting interest rates too soon, with broad uncertainty about how long borrowing costs should remain at their current level, according to the minutes of the Jan. 30-31 session.

Dubai’s main share index fell 0.6%, extending losses from the previous session when it snapped a nine-day winning streak, hit by a 1.5% fall in blue-chip developer Emaar Properties.

A slim majority of economists polled by Reuters now expects the Fed to start cutting rates in June, farther out than market expectations last month of a first cut in March.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Qatar, the United Arab Emirates and Saudi Arabia.