Rising US rates hit Gulf borrowers as Nigeria holds key rate steady

Analysts say the Federal Reserve is moving toward a new tightening cycle, with the benchmark federal funds rate expected to rise from 3.50% to 3.75% in September. Because Gulf currencies are closely tied to the dollar, the Fed’s higher rates quickly translate into more expensive variable‑rate loans for households in the United Arab Emirates and the wider Gulf region. Mortgage, auto and credit‑card costs are set to climb, adding pressure to already high living‑expense items such as rent and education.

In Nigeria, the Monetary Policy Committee left the central bank’s policy rate unchanged at 26.5% for a third straight meeting, signalling that preserving price stability and exchange‑rate confidence now outweighs growth support. With inflation still elevated and geopolitical tensions feeding energy‑price risks, high yields have become the new baseline for investors. Treasury bills remain above inflation, while government bonds rank among the highest‑yielding sovereign assets in emerging markets.