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Saudi Arabia cuts interest rates by 75 bps

Saudi Arabia cuts interest rates by 75 bps
SAMA slashed repo rates by 75 basis points (bps)

Riyadh – Mubasher: The Saudi Arabian Monetary Authority (SAMA) has decided to cut interest rates by 75 basis points (0.75%).

The repo rate has been cut 1.75% to 1.00%, while the reverse repo was reduced from 1.25% to 0.50%, according to a statement issued on Monday.

The reduction in repo rates aims at preserving monetary stability given the evolving global developments, SAMA added, referring to the new coronavirus (COVID-19) becoming a global pandemic.

Yesterday, the US Federal Reserve decided to cut its benchmark interest rate by 1% to a range of 0% to 0.25%, in a surprise move that aims at offsetting the impact of the new virus.

This is the second rate cut by the Saudi central bank in March, following a 0.5% reduction of main rates earlier this month.