The Saudi Central Bank, known as SAMA, cut its repo rate by 50 basis points to 5.50% on Wednesday, moving in lockstep with the United States Federal Reserve. SAMA simultaneously lowered its reverse repo rate from 5.50% to 5.00%. The decisions were announced shortly after the Fed published its own rate decision. The Saudi riyal is pegged to the US dollar.
OTHER GULF RATE CUTS
Several GCC peers that also maintain dollar pegs announced comparable rate reductions on Wednesday.
SAUDI LENDING BENCHMARK
Variable-rate corporate and consumer credit facilities are typically priced off the Saudi interbank offered rate (SAIBOR), which tracks SAMA's policy rates.
SAMA's statement, published on its website, did not include specific commentary on the domestic economic outlook.
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