ALBAWABA – The Saudi Central Bank (SAMA), previously known as the Saudi Arabian Monetary Authority and the central bank of the Kingdom of Saudi Arabia, announced cutting benchmark basis points to 5.25 percent.
Saudi Central Bank cuts benchmark
The Saudi Central Bank announced a 25 basis point cut to its benchmark rate, following the US Federal Reserve's recent decision to lower its target range to 4.5% - 4.75%, matching the reduction.
The Saudi Central Bank (SAMA) said in a statement: “In light of global developments, and in accordance with the Central Bank’s objective of maintaining monetary stability, it has decided to reduce the Repurchase Agreement rate by 25 basis points to 5.25 percent, and the Reverse Repurchase Agreement rate by 25 basis points to 4.75 percent.”
Saudi Arabia's gross domestic product (GDP) increased by 2.8% in the third quarter of 2024, according to the General Authority for Statistics date. (Shutterstock)
SAMA lowered both the Repurchase Agreement (Repo) rate and the Reverse Repurchase Agreement (Reverse Repo) rate by 25 basis points, bringing them to 5.25% and 4.75% to maintain monetary and financial stability in the country.
It is worth mentioning that other Gulf central banks followed the US Federal Reserve’s interest rate cut, including UAE, Bahrain, and Qatar.
US Federal Reserve interest rate cut
The US Federal Reserve announced interest rate cuts for the second time in a row in 2024, by 25 basis points, to a range of 4.5% to 4.75% on Thursday.
Saudi Arabia economy
Saudi Arabia's gross domestic product (GDP) increased by 2.8% in the third quarter of 2024, according to the General Authority for Statistics date.
This growth was driven by a 4.2% increase in non-oil activities, a 3.1% rise in government activities, and a 0.3% increase in oil sector activities.
