Saudi Central Bank Cuts Key Interest Rates Following Fed's Lead

Saudi Arabia's central bank cut its repo and reverse repo rates by 50 basis points to 5.50% and 5.0%, respectively. The move aligns with the Federal Reserve's decision to reduce U.S. interest rates by half a percentage point. The Saudi riyal is pegged to the U.S. dollar.

In an authoritative move, Saudi Arabia's central bank, widely recognized as SAMA, announced a 50 basis point reduction in its Repurchase Agreement (repo) rate to 5.50% on Wednesday.

Coinciding with this, SAMA also slashed its reverse repo rate by the same margin to 5.0%. This decisive action followed the Federal Reserve's choice to lower U.S. interest rates by half a percentage point on the same day.

The Saudi riyal, which is pegged to the U.S. dollar, is anticipated to feel the effects of these monetary policy adjustments, aligning the kingdom's economic strategy closely with U.S. fiscal policy.

(With inputs from agencies.)