SAMA slashes reverse repo, repo rates by 25 bps

Logo of The Saudi Central Bank (SAMA) 

The Saudi Central Bank (SAMA) reduced today, Dec. 18, its reverse repo rate by 25 basis points (bps) to 450 bps from 475 bps.
 
Similarly, SAMA cut its repo rate by 25 bps to 500 bps from 525 bps.
 
In a statement, the central bank said this decision aligns with its objectives to maintain monetary stability and support financial stability.
 
The Federal Reserve reduced today the interest rate range by 25 bps, to a range between 4.25% and 4.50% compared to the previous range between 4.50% and 4.75%.
 
The US central bank had raised the rates 11 consecutive times, the last of which was in July 2023, setting the range between 5.25% and 5.50%. This rate was held steady for eight consecutive meetings until it was reduced for the first time in September by 50 bps, then by 25 bps in November.
 
SAMA follows the interest rate moves of the Fed due to the riyal-US dollar peg.