Saudi Central Bank Raises Key Rates 25 Basis Points

The Saudi Central Bank has raised its key policy rates by 25 basis points, The move keeps the Kingdom's monetary policy aligned with recent global developments and follows a similar hike by the US Federal Reserve.

Under the decision, the repurchase agreement (repo) rate rises to 4.50%, up from 4.25%, while the reverse repurchase agreement (reverse repo) rate increases to 4.00%, up from 3.75%. The adjustment came within the 16–18 September 2026 policy window.

The central bank said the step is aimed at preserving monetary stability and supporting financial stability in light of global monetary conditions. It comes shortly after the US Federal Reserve raised its target range by 25 basis points to between 3.75% and 4.00%.

Why it matters

The repo and reverse repo rates are core policy tools that influence the cost of interbank lending and deposit operations within the banking system. Changes in these rates can gradually feed through to borrowing and savings rates offered by banks over time.

For residents and expats, it is worth noting that these are central bank policy rates and do not involve any government public-service platforms. There are no per-transaction fees and no citizen or resident steps tied directly to the rate change. Anyone considering loans, deposits, or other banking products may wish to check with their bank for the latest terms.

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