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# Saudi Central Bank SAMA Cuts Repo Rate by 25 Basis Points to 5.25% Following Fed
- URL: https://www.theglobalbanker.com/saudi-central-bank-sama-cuts-repo-rate-25-basis-points-5-25-fed/
- Published: 2024-11-07T19:30:00.000Z
- Updated: 2026-11-01T17:20:22.000Z
- Description: SAMA reduced its repo rate to 5.25%, tracking the US Federal Reserve's 25bp cut, and lowered its reverse repo rate to 4.75%.
- Author: TGB Editorial Team
- Tags: Central Banks, MENA, #archive

The Saudi Central Bank, known as SAMA, cut its repurchase agreement rate by 25 basis points to 5.25% on Thursday, 7 November 2024, moving in lockstep with the United States Federal Reserve's decision on the same day. The Saudi riyal is pegged to the US dollar.

In its announcement, SAMA said the decision was in line with its objectives of maintaining monetary stability and supporting financial stability. It also cut the reverse repo rate by 25 basis points to 4.75%.

#### THE RIYAL PEG

The riyal peg, maintained at 3.75 to the dollar since 1986, means that Saudi Arabia's interest rate decisions are structurally aligned with those of the Federal Open Market Committee. When the Fed tightened between March 2022 and July 2023, SAMA followed suit with broadly matching increases. As the Fed has pivoted to easing, SAMA has correspondingly reduced borrowing costs.

With the repo rate now at 5.25%, Saudi borrowing costs have moved down from the peak of the tightening cycle.