Saudi Arabia, UAE update interest rates after Fed hike

RIYADH: Saudi Arabia’s central bank raised its key interest rates on Wednesday following a hike by the Federal Reserve as the US agency continued its battle to contain inflation.
Saudi Central Bank (SAMA) matched the Fed’s increase of three-quarters of a percent.
“SAMA has decided to raise the rate of Repurchase Agreement (Repo) by 75 basis points to 3.75 percent, and the rate of Reverse Repurchase Agreement (Reverse Repo) by 75 basis points to 3.25 percent,” the bank said in a statement on Wednesday evening, citing an objective of maintaining monetary and financial stability.
The Central Bank of the United Arab Emirates said it was hiking its base rate by three quarters of a percentage point as well to 3.15% effective from Thursday, moving in parallel with the Fed’s third straight hike of that size.
The bank said it would maintain the rate on borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the base rate.

(With input from Reuters)

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