Saudi Central Bank raises key interest rates by 75 bps

The Saudi Central Bank said on Wednesday it increased its key interest rates by 75 basis points, moving in tandem with the U.S. Federal Reserve’s hike as the Saudi riyal is pegged to the dollar.

The Saudi Central Bank, also known as SAMA, lifted its repo and reverse repo rates by 75 bps to 3.75% and 3.25%, respectively, it said in a statement.

The US Federal Reserve raised target interest rate to a range of 3%-3.25%, from 2.25% and 2.50% previously. This latest rate hike marks the fifth this year, as the central bank raised rates in March, May, June and July.

Image Credit: Saudi Central Bank (SAMA)