Central Banker Report Cards 2025: Middle East

Central Banker Report Cards 2025: Middle East

While central banks prepare for 2026 inflation, a consensus on tackling it remains elusive. Global Finance reveals the 2025 Central Banker Report Cards in the Middle East.

Bahrain's Economic Stability

Bahrain, the smallest economy in the Gulf Cooperation Council (GCC), remains stable. GDP growth is expected to remain at 3.5% this year, with inflation expected to stay below 1%. The dirham is pegged to the dollar, and the Central Bank of Bahrain's (CBB) monetary policy aligns with that of the Fed.

Bahrain could face tighter financial conditions from trade-related inflationary pressures and disrupted global supply chains.

The World Bank noted this in its latest statement. Following the Fed's cut in September, CBB cut the overnight deposit rate by 25 bps to 4.75%. Bahrain was among the first Middle Eastern countries to diversify its economy away from oil rents decades ago.

Author's summary: Bahrain's economy remains stable despite global challenges.

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Global Finance Magazine Global Finance Magazine — 2025-10-14

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