Saudi Arabia's Central Bank Aligns with Fed's Rate Cut

Saudi Arabia's central bank announced on Wednesday a 25 basis point reduction in its repo rate, bringing it down to 4.50%. Similarly, the reverse repo rate was trimmed by 25 basis points to 4.00%.

This move aligns the Kingdom's monetary policy with the U.S. Federal Reserve, which recently lowered its interest rates by a quarter of a percentage point.

The adjustments underscore the dependency of Saudi Arabia, due to its currency being pegged to the U.S. dollar, on the American central bank's fiscal changes.