Saudi Central Bank Raises Repo Rates 25bps

The Saudi Central Bank raised its key interest rates on 16 September 2026, lifting the repo rate to 4.50% and the reverse repo rate to 4.00%, each by 25 basis points. The decision was announced in mid-September through the bank's official channels.

The repo rate rose from 4.25%, while the reverse repo rate increased from 3.75%. These two rates form the boundaries of the central bank's interest-rate corridor: the repo rate acts as the ceiling and the reverse repo rate as the floor for short-term liquidity operations between banks.

The move is part of the central bank's standard monetary policy toolkit. It is applied directly in interbank operations and financial markets, and does not involve any changes to procedures on government or digital services used by residents. No end date or validity period was set, meaning the new rates stay in force until a future official decision revises them.

Why it matters

Changes to benchmark rates typically influence borrowing and financing costs across the banking sector, which can affect loans, deposits, and related products over time. The latest adjustment follows earlier reductions in late 2025 that had brought the repo rate to 4.50% and the reverse repo rate to 4.00%, before the 2026 increase raised the repo to 4.50% from 4.25% and the reverse repo to 4.00% from 3.75%.

Residents and businesses in Riyadh, Jeddah, and across the Kingdom may notice the effects gradually through banks' pricing decisions, though the rate change itself requires no direct action from individuals.

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