Saudi Central Bank Raises Repo Rate to 4.50%

The Saudi Central Bank raised its two key overnight policy rates by 25 basis points on 16 September 2026, tightening the corridor it uses in dealings with licensed banks operating in Saudi Arabia.

Under the decision, the repurchase agreement (repo) rate moved from 4.25% to 4.50%, while the reverse repurchase agreement (reverse repo) rate rose from 3.75% to 4.00%. This sets the new policy corridor with a ceiling of 4.50% and a floor of 4.00%.

Both rates are overnight tools applied between the Saudi Central Bank and licensed banks. The repo rate is the rate at which banks can borrow short-term funds, while the reverse repo rate is what banks earn on funds placed with the central bank. Together they anchor the cost of money across the banking system.

Why it matters

Changes to these rates typically influence the cost of borrowing and the return on deposits over time, as banks adjust their own lending and savings products. However, the repo and reverse repo rates themselves are interbank monetary policy instruments — they are not fees charged to individuals or companies, and no steps or charges through government service platforms apply to them.

The new rates take effect from the decision date and remain in force until replaced by a subsequent Saudi Central Bank decision. Current repo and reverse repo rates are published officially on the Saudi Central Bank's website under its Monetary Policy and Monetary Operations sections.

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