Saudi Central Bank Raises Repo Rate to 4.50%

The Saudi Central Bank (SAMA) raised its key policy interest rates by 25 basis points in September 2026, in a move aimed at curbing inflation and preserving monetary and financial stability. The repo rate rose from 4.25% to 4.50%, while the reverse repo rate increased from 3.75% to 4.00%, effective immediately from the announcement date.

The repo and reverse repo are overnight policy rates used in SAMA's short-term liquidity operations. Their new levels — 4.50% and 4.00% — remain in effect until the next policy decision. Official monetary policy details and current rates are published on SAMA's website under its monetary policy pages.

The decision aligns with global monetary developments and recent moves by the US Federal Reserve. It reverses a prior 25 basis point reduction in November 2024, when the repo was cut to 5.25% and the reverse repo to 4.75%, before subsequent easing and further adjustments.

What it means for residents

No additional SAR fees or service charges are imposed directly on individuals through government platforms as a result of this adjustment. The impact reaches the public indirectly through how banks price credit and deposits.

Commercial banks typically adjust loan interest rates, credit card rates, and deposit yields based on the new policy rates. The exact timing and SAR pricing are determined by each bank's internal policies and existing contracts. Residents in Riyadh, Jeddah, and across the Kingdom may see gradual changes in borrowing costs and savings returns as banks update their pricing in the weeks ahead.

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