Saudi Arabia’s central bank, SAMA, announced a reduction in its Repurchase Agreement (repo) rate by 50 basis points to 5.50%, and its reverse repo rate by the same margin to 5.0%.
This decision aligns with the Federal Reserve’s recent cut of U.S. interest rates by half a percentage point. The Saudi riyal, pegged to the U.S. dollar, is directly influenced by changes in U.S. monetary policy.
These adjustments are part of broader efforts to manage economic stability and respond to international financial trends.