March 16, 2017 / 1:11 PM / 4 months ago

UPDATE 1-Qatar central bank raises policy rates, cuts reserve requirement -official

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(Updates with formal statement, adds deposit rate rise) (Adds details.)

DOHA, March 16 (Reuters) - Qatar's central bank said on Thursday that it raised its overnight lending rate by 25 basis points to 5.0 percent after the U.S. Federal Reserve tightened policy by a similar margin.

The central bank also increased its overnight deposit rate by 25 bps to 1.25 percent.

However, the central bank reduced banks' reserve requirement - the amount of money they must hold back from lending as reserves - by 25 bps to 4.5 percent.

The reserve requirement cut followed complaints by commercial banks about tight liquidity in the money market, which has driven short-term market rates up sharply in the past 18 months. The reserve requirement was last changed in April 2008. (Reporting by Tom Finn; Writing by Andrew Torchia; Editing by Larry King)

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