Riyadh, December 19, 2024 – The Saudi Central Bank (SAMA) has announced a strategic decision to reduce the Repurchase Agreement (Repo) rate by 25 basis points to 5.00 percent, and the Reverse Repurchase Agreement (Reverse Repo) rate by 25 basis points to 4.50 percent. This move reflects SAMA’s ongoing commitment to maintaining monetary stability and supporting economic growth in Saudi Arabia, particularly in light of prevailing global financial conditions.
The decision comes amid a dynamic global economic environment, where central banks around the world are adjusting their monetary policies in response to changing inflationary pressures, interest rates, and market conditions. By lowering the Repo and Reverse Repo rates, SAMA aims to promote liquidity in the domestic financial system, encouraging lending and investment activity. This action is designed to help stimulate economic activity while managing inflationary risks within the Kingdom.
SAMA’s approach to monetary policy remains aligned with its core mandate of preserving the stability of the Saudi economy. The adjustment in interest rates is intended to ensure that the Kingdom’s financial system continues to function efficiently, providing the necessary support for both public and private sector investments. The central bank’s decision also comes as part of its broader strategy to accommodate the evolving needs of the economy, ensuring that it remains resilient in the face of external challenges.
In a statement, SAMA emphasized that the decision was made after careful consideration of both domestic economic conditions and global developments, highlighting the bank’s focus on maintaining financial stability. The central bank noted that it would continue to monitor economic indicators and adjust its policy stance as needed to respond to any future changes in global and domestic market conditions.
With this rate adjustment, SAMA reinforces its role as a key institution in supporting the Kingdom's Vision 2030 objectives, which include fostering sustainable economic growth, financial stability, and enhancing the overall investment climate in Saudi Arabia. The decision to adjust the Repo and Reverse Repo rates further demonstrates SAMA’s proactive approach to managing monetary policy in a rapidly changing global economic landscape.