SAMA cuts repo, reverse repo rates by 25 bps

SAMA says decision aligns with its objectives to maintain monetary stability

The Saudi Central Bank (SAMA) decided to cut the reverse repurchase (reverse repo) rate by 25 basis points, from 4.25% to 4%, and reduce the repurchase (repo) rate by 25 basis points from 4.75% to 4.50%.

In a statement today, Oct. 29, SAMA said the decision aligns with its objectives to maintain monetary stability, in light of global developments.

Earlier today, the US Federal Reserve decided to lower the interest rate by 25 basis points to a range between 3.75% and 4%, down from the previous range of 4% to 4.25%.

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

SAMA usually mirrors the US Federal Reserve’s interest rate changes due to the peg between the Saudi riyal and the US dollar.