SNG: Saudi Arabia cuts repo and reverse repo rates by 25 basis points

Tadawul All Shares Index -0.07%

Tadawul All Shares Index

TASI.SA

11268.38

-0.07%

Staff Writer

RIYADH —The Saudi Central Bank (SAMA) decided to reduce the repurchase agreement (repo) rate by 25 basis points (bps) from 450 to 425 bps and the reverse repurchase agreement (reverse repo) rate by 25 basis points from 400 bps to 375 bps.

SAMA has taken this decision in light of global developments and in line with its objective of maintaining monetary stability. The decision followed the US Federal Reserve’s earlier move on Wednesday to cut interest rates by 25 bps.

The SAMA decision comes after the US Federal Reserve cut interest rates on Wednesday. SAMA typically mirrors the US Federal Reserve’s interest rate changes, given the peg between the Saudi riyal and the US dollar.

The repo rate is the lending rate that the central bank charges commercial banks while the reverse repo rate is the interest that banks earn when they deposit funds with the Central Bank.

© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.
This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.