Saudi central bank raises repo, reverse repo rates by 25 bps

Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank, has raised its repo rate from 200 basis points (bps) to 225 bps and also raised its reverse repo rate by 25 basis points to 175 bps, SAMA said in a statement.

The central bank said its decision was "consistent with monetary stability in the evolving domestic and international monetary conditions."

This was the first time in several years that the central bank hiked its repo rate. In previous monetary update, it only raised the reverse repo, limiting upward pressure on money market rates.