The Saudi Central Bank, known as SAMA, held its repurchase agreement rate at 4.25% and its reverse repurchase agreement rate at 3.75% following the US Federal Reserve's 18 March 2026 decision, maintaining the stance adopted in line with the kingdom's long-standing currency peg to the US dollar. SAMA typically aligns its rate adjustments with the Federal Reserve because of the riyal's peg to the US dollar; it last changed rates on 10 December 2025, cutting both by 25 basis points after a Fed cut.
Saudi inflation stood at 1.7% in February 2026, its lowest level in a year. The economy expanded 5% year on year in the fourth quarter of 2025, with oil activities growing 10.8% and non-oil activities 4.3%.
DOLLAR PEG CONSTRAINS SAMA'S OPTIONS
The Federal Reserve kept its target range for the federal funds rate at 3.50% to 3.75% on 18 March, in an 11-1 vote.
GROWTH AND INFLATION BACKDROP
Oil activities added 2.6 percentage points to fourth-quarter growth and non-oil activities 2.4 points, while exports rose 12.8% year on year, according to GASTAT data.
Bank news that matters, every weekday.
Follow The Global Banker on LinkedIn