Saudi Gazette report

RIYADH — The Saudi Central Bank (SAMA) has decided on Wednesday to raise the rate of Repurchase Agreement (Repo) by 50 basis points to 5 percent, and the rate of Reverse Repurchase Agreement (Reverse Repo) by 50 basis points to 4.50 percent.

This was in line with SAMA’S objective of maintaining monetary and financial stability, it said in a statement. The repo rate is the service charge paid by the Central Bank to commercial banks for lending money in the repo market. Reverse Repos, on the other hand, are conducted whenever the Central Bank is injecting liquidity into the domestic market.