The Central Bank of Saudi Arabia has decided to raise the repo rate by 50 basis points to 5%.
The Central Bank also decided, in a press release, viewed by Al-Arabiya.netto raise the reverse repo rate by 50 basis points to 4.50%.
The bank said that this decision is in in line with the central bank’s objectives of maintaining monetary stability and supporting financial stability.
And “repo” is a term that means repurchase option between the central bank and the banks, and more precisely it is a form of short-term lending, depositing one’s funds with the central bank.
On Wednesday, the US Federal Reserve’s Open Market Committee decided to raise the federal funds rate by 50 basis points, in a range between 4.25% and 4.5%, in in line with market expectations.
The Fed has warned that the time has not yet come to stop these hikes, estimating that the interest rate will exceed 5%.
The decision to raise the interest rate approved by the Federal Reserve is the seventh change since the beginning of 2022, after interest rates were raised in March, May, June, July, September and November.
The reserve stated in a statement after its meeting that the base interest rate now ranged between 4.25% and 4.50%, which is the highest level since 2007.
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