Saudi Central Bank reduces repo and reverse repo rates by 25 basis points

Saudi Gazette report

RIYADH — The Saudi Central Bank (SAMA) has announced a 25 basis point reduction in both the Repurchase Agreement (Repo) rate and the Reverse Repurchase Agreement (Reverse Repo) rate, bringing them down to 5.25% and 4.75% respectively. This decision aligns with SAMA’s objectives to maintain monetary stability and support financial stability.

The move follows the US Federal Reserve’s recent rate cut, reflecting SAMA’s strategy to mirror global monetary policy trends. The Federal Reserve’s decision to reduce its benchmark rate by 25 basis points has influenced similar actions by central banks in the Gulf Cooperation Council (GCC) countries, including Saudi Arabia.