Central Banker Report Cards 2025: Middle East
Global Finance reveals the 2025 Central Banker Report Cards in the Middle East, where consensus on tackling inflation is still elusive.
The smallest economy in the Gulf Cooperation Council (GCC), Bahrain, remains stable with expected GDP growth of 3.5% and inflation below 1% this year.
The Central Bank of Bahrain’s (CBB) monetary policy aligns with that of the Fed, and following the Fed’s cut in September, CBB cut the overnight deposit rate by 25 bps to 4.75%.
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, despite Bahrain being among the first Middle Eastern countries to diversify its economy away from oil rents decades ago.
Author summary: Central banks in the Middle East prepare for 2026 inflation.
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