Saudi Arabia’s central bank raises key interest rate by 75 basis points

Saudi Gazette report

RIYADH — The Saudi Central Bank (SAMA) raised on Wednesday its reverse repo rate by 75 basis points (bps) to 325 bps from 250 bps. It also lifted its repo rate to 375 bps (3.75%) from 300 bps.

The US Federal Reserve raised target interest rate to a range of 3%-3.25%, from 2.25% and 2.50% previously.

This recent rate hike is the fifth this year, as the central bank raised rates in March, May, June and July.

SAMA follows the interest rate moves of the US Federal Reserve due to the Riyal-US dollar peg.