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. This brings down the Repo rate to 5.00 percent and Reverse Repo rate to 4.50 percent, according to the Saudi Press Agency. This decision aligns with SAMA's mandate of maintaining monetary stability and support financial stability in the context of global developments. The move aligns with the decision of the US Federal Reserve, which cut its benchmark rates by 25 basis points, bringing its target rate to between 4.25 percent and 4.5 percent. This cut reflects SAMA's strategy to mirror global monetary policy trends. The central banks in other Gulf Cooperation Council (GCC) states also followed the US Federal Reserve decision in reducing their Repo and Reverse Repo rates.
