The Saudi central bank increased Wednesday the interest rate by 50 basis points in a bid to control inflation, Arab News reports.
The bank known as SAMA, said the move is in line with objectives of maintaining monetary and financial stability.
“The Saudi Central Bank has decided to raise the Repurchase Agreement rate by 0.5 percent to 1.75 percent from a previous 1.25 percent, and the Reverse Repurchase Agreement rate by 0.5 percent to 1.25 percent from a previous 0.75 percent,” it said.
The bank also raised its repo rate and reverse repo rate to 1.75 percent and 1.25 percent, respectively.
The increase followed the US Federal Reserve’s similar move that tamed the inflation at multi-decade highs.
Saudi Central bank increases interest rate by 50 basis points to tame inflation
