Fed and the Gulf, Saudi’s GBI inclusion, BAM meeting

Central banks in the Gulf followed the Fed by cutting interest rates by 25bp, but the backdrop of lower oil prices is likely to temper the impact of looser monetary policy on credit growth. Meanwhile, Saudi Arabia looks set to be added to the GBI-EM benchmark index, which should result in inflows to the Kingdom in 2026, helping to finance the budget deficit. Elsewhere, we hold a non-consensus view that Morocco’s central bank will deliver one final 25bp rate cut, to 2.00%, next week.