Riyadh: In light of global developments and in accordance with its objective of maintaining monetary stability, the Saudi Central Bank (SAMA) decided to reduce the Repurchase Agreement (Repo) rate by 25 basis points to 4.75 percent, and Reverse Repurchase Agreement (Reverse Repo) rate by 25 basis points to 4.25 percent.
According to Saudi Press Agency, this decision aligns with SAMA's strategic approach to ensure economic stability and respond to international economic changes. The adjustment in rates is a part of SAMA's ongoing efforts to manage the economic environment effectively and support the Kingdom's financial objectives.
The Repo rate, which influences the cost of borrowing for banks, has been adjusted in response to various economic indicators. Similarly, the Reverse Repo rate, which impacts the returns on excess cash banks deposit with SAMA, has been calibrated to reflect the current financial landscape.
These rate adjustments are crucial for guiding liquidity in the banking system and ensuring that monetary conditions remain supportive of economic growth. Industry experts are closely watching these changes as they may influence future financial and economic strategies within the region.