Wednesday 10 December 2025 – 10:12 PM
The central bank decided Saudireducing the rate of reverse repurchase agreements (reverse repo) by 25 basis points from 400 basis points to 375 basis points, and reducing the rate of repurchase agreements (repo) by 25 basis points as well, from 450 basis points to 425 basis points.
Interest rate reduction
The Saudi Central Bank said in a statement today, Wednesday, that this decision is consistent with its goals of maintaining monetary stability in the context of global developments.
The decision comes after the US Federal Reserve today lowered the interest rate by 25 basis points, reaching the range between 3.50% and 3.75%, compared to its previous level between 3.75% and 4.00%.
The Saudi Central Bank usually follows the example of the US Federal Reserve in changing interest rates on the riyal, given the link between the two currencies, the riyal and the dollar.
The price of reverse repurchase agreements (reverse repo) represents the interest rate that banks receive when depositing their funds with the central bank, while the price of repurchase agreements (repo) represents the lending rate from the central bank to banks.
Today, the US Federal Reserve decided to reduce federal funds rates by 25 basis points, to a range of 3.50% – 3.75%, for the third time in 2025.
