SAMA slashes reverse repo, repo rates 25 bps

Logo of Saudi Central Bank (SAMA)

The Saudi Central Bank (SAMA) reduced today, Sept. 17, its reverse repo rate by 25 basis points (bps) to 425 bps from 450 bps.
 

Similarly, SAMA cut its repo rate by 25 bps to 475 bps from 500 bps.  
 

The central bank said in a statement that the decision aligns with its objectives of maintaining monetary stability amid global developments.
 

Meanwhile, the US Federal Reserve cut its benchmark interest rate by 25 bps today, bringing it to a range of 4%–4.25% compared with the previous range of 4.25%-4.50%.
 

The Fed had previously raised rates 11 consecutive times, most recently in July 2023, before holding them steady at 5.25%–5.50% for eight straight meetings until July 2024. It then cut rates for the first time in September 2024 by 50 bps, followed by 25 bps in November and December, and kept them unchanged in July 2025 for the fifth consecutive meeting at 4.25%–4.50%.
 

The reverse repo rate represents the interest banks earn when depositing funds with the central bank, while the repo rate is the interest charged by the central bank when lending to banks.
 

Saudi Arabia typically mirrors the Fed interest rate changes due to the riyal’s peg to the US dollar.