The Saudi Central Bank, following the example of the US Federal Reserve, decided to raise the rate of repo repo agreements by 75 basis points to 3.75%, and also decided to raise the rate of reverse repo agreements by 75 basis points to 3.25%.
According to Arabiya Net, the Saudi Central Bank's decision comes in light of the US Federal Reserve's decision to raise interest rates; This is in line with the objectives of the Central Bank of Saudi Arabia in maintaining monetary and financial stability, and in light of global developments.
The US Federal Reserve's Open Market Committee decided on Wednesday to raise the federal funds rate by 75 basis points to a range between 3% and 3.25%, the highest level since early 2008.
The decision came within the strict policy approach adopted by the US Central Bank to confront record inflation rates.
Policy makers also indicated that by early 2023, they expect rates to be much higher than forecast in June.
The near-zero increases that began in March represent the most tightening by the Fed since it began using the money rate as a main tool in 1990. The only comparison was in 1994, when the Fed raised a total of 2.25 percentage points, The interest rate cut will start by July of the following year.
Alongside the massive increases in interest rates, Fed officials have indicated an intention to keep rising until they reach 4.6% in 2023.
