Saudi Central Bank Raises Repo and Reverse Repo Prices by 25 basis points

On Wednesday, the Central Bank of Saudi Arabia decided to raise the repo rate by 25 basis points to 5.25%.

The central bank also decided to raise the reverse repo rate by 25 basis points to 4.75%.

In a statement, he said that the decision was made in light of monetary developments in global markets and taking into account the Central Bank’s goals of maintaining monetary stability and supporting financial stability.

And “REPO” is a term that means the possibility of a repurchase between the central bank and banks, or rather, a form of short-term borrowing, placing one’s funds in the central bank.

The Open Market Committee of the US Federal Reserve decided to raise the federal funds rate by 25 basis points to a range of 4.50% to 4.75% in line with market expectations.

US Federal Reserve Chairman Jerome Powell welcomed the recent decline in inflation data but said it was not enough to bring consumer prices back to the 2% target.

“We’ll need significantly more evidence” that inflation is declining to be sure it returns to the 2% target, Powell said at a press conference following a meeting of the Federal Open Market Committee at the US central bank.

The Fed raised interest rates 7 times in 2022 at meetings in March, May, June, July, September, November and December.

The Fed cut its pace of rate hikes from 50 points last December to 75 points in November, indicating the success of the Fed’s aggressive campaign to slow inflation.

Prior to the monetary tightening campaign, the interest rate in March 2022 was in the range of 0.25% to 0.50%.

Source: agencies + Saudi media