Public RecordRecord
Saudi Central Bank raises repo rate to 450 basis points
Reverse repo rate increased to 400 basis points, each by 25 basis points, effective September 16, 2026.
The Saudi Central Bank raised the repurchase agreement repo rate by 25 basis points to 450 basis points and the reverse repurchase agreement rate by 25 basis points to 400 basis points, effective September 16, 2026. The decision was announced by the Saudi Central Bank on September 16, 2026, according to Saudi Gazette. The announcement stated the decision aligns with the Saudi Central Bank's mandate of preserving monetary stability.
Rate adjustment announced September 16#
The repo rate moved from 425 basis points to 450 basis points. The reverse repo rate moved from 375 basis points to 400 basis points. Both adjustments took effect on the date of announcement. The US Federal Reserve raised its benchmark interest rate by 25 basis points on September 16, 2026, bringing it to a range of 3.75 percent to 4.00 percent from a previous range of 3.50 percent to 3.75 percent, according to the source.
Definitions of repo and reverse repo rates#
The repo rate represents the lending rate the central bank charges banks when they borrow funds. The reverse repo rate represents the interest rate banks receive when depositing funds with the central bank. The 25 basis point adjustment to each rate maintains the 50 basis point spread between the two rates. Banks operating in Saudi Arabia now face the adjusted rates for borrowing from and depositing with the central bank.
US Federal Reserve rate change#
The US Federal Reserve's rate increase marked the first time in over three years the US central bank raised its benchmark interest rate, according to Saudi Gazette. The US central bank's decision comes as it addresses inflation fueled by rising energy prices, the source reported. The Federal Reserve's previous range stood at 3.50 percent to 3.75 percent before the September 16 adjustment.
Sources1 source across 1 domain
- saudigazette.com.saSaudi GazetteSaudi Central Bank raised repo rate to 450 basis points and reverse repo rate to 400 basis points, each by 25 basis points, effective September 16, 2026
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