Gulf states on Thursday cut some interest rates in a move that generally tracked the US Federal Reserve’s 25 basis points cut, undermining speculation that these oil-exporting economies may drop their dollar pegs.

Saudi Arabia, the largest economy in the region, reduced one of its interest rates by 25 basis points while raising banks’ reserve requirements to limit the growth of monetary supply in a bid to tame rising inflation. Five of the six Gulf Co-operation Council members peg their currencies to the US dollar and therefore usually follow US interest rate decisions. Kuwait in May abandoned its dollar peg, citing rising levels of inflation imported by the weakening dollar.