Gulf Arab Banks seek individual interest rates!

After the single currency project was thrown into disarray by Kuwait removing its currency from being pegged to the U.S dollar so as to curb rampant inflation,the 6 gulf countries met today to decide on central bank rates.and they have all decided to apply their own individual central bank rates rather than have a single prevalent interest rate to offset the inflation.of course,this news would only make foreign currency traders happy as they well know that any interest rate differential between central banks only means more money in their pockets.but can inflation truly be curbed by just raising and lowering of the interest rates.such policies may work in the short term but in the long term??

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