The Saudi Central Bank, also known as SAMA, has raised its main interest rate by 25 basis points in line with the US Federal Reserve as it seeks to try to counter inflation.
The bank raised its repurchase agreement rate by 25 bps to 5.75 percent, and the rate of reverse repurchase agreement by 25 bps to 5.25 percent.
The move followed the Fed increasing US interest rates by a quarter of a percentage point, the 10th consecutive rise since March 2022. Most central banks in the Gulf Cooperation Council track the Fed’s policy rate moves as their currencies are pegged to the US dollar, so the announcement from SAMA was immediate.
The Central Bank of the UAE raised its base rate on overnight deposits by 25 bps to 5.15 percent, the state news agency WAM said. —AN