Key Economic News – Friday, September 18, 2026

Major economic developments and news on the global and Arab stages:

Monetary Policies and Central Banks:

- Bank of Japan: Raised interest rates to their highest level in 31 years, despite the Japanese yen’s continued depreciation against the dollar.

- Bank of England: Decided to hold interest rates steady at 3.75%—diverging from the US Federal Reserve’s move—amid warnings that inflationary pressures could exceed 4% due to rising energy costs.

- Federal Reserve: Gulf central banks are poised to follow the Fed’s lead in adjusting interest rates, amidst repeated statements and demands from Trump to cut rates to 1% or lower.

Energy and Commodity Markets:

- Oil: Crude prices (Brent and WTI) are experiencing a continuous decline for the third consecutive day as concerns regarding disruptions to Saudi supplies and shipping in the Red Sea and the Strait of Hormuz subside.

- Gold: Gold is regaining its luster as a safe-haven asset, climbing toward highs near $4,400 per ounce.

Global Trade and International Relations:

- Trade War (US and China): Washington is moving to postpone the imposition of anticipated new tariffs on Chinese imports until after the upcoming summit between Trump and Xi Jinping.

- Europe and Canada: The European Commission is taking steps to strengthen its economic partnership with Canada in response to recent US trade threats.

Arab and Local Economies

- Egypt: Sharp fluctuations in the pound's exchange rate against the dollar amid outflows of "hot money," and the government ruling out new relief measures for struggling real estate developers.

- Saudi Arabia: A boost in oil exports and shipments, alongside a slight reduction in holdings of US bonds—according to recent data—to $142.4 billion.