Today, Wednesday, the Central Bank of Saudi Arabia decided to raise the rate on the repurchase agreement “REPO” by 25 basis points, to 5.5%.
The central bank also decided in a statement seen by Al-Arabiya.net to raise the reverse repo rate by 25 basis points to 5%.
The bank said the decision is in line with the central bank’s goals of maintaining monetary stability and supporting financial stability.
And “REPO” is a term that means the possibility of a repurchase between the central bank and banks, or rather, a form of short-term borrowing, placing one’s funds in the central bank.
The Open Market Committee of the US Federal Reserve decided to raise the federal funds rate by 25 basis points to a range of 4.75% to 5% in line with market expectations.
