Saudi central bank raises repo and reverse repo rates by 25 bps

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Saudi central bank also raised its repo rate, at which it lends to banks, by 25 basis point to 2.5%

Davide Barbuscia, Saeed Azhar and Katie Paul, Reuters News

June 14, 2018

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DUBAI - Saudi Arabia's central bank said on Wednesday it was increasing its reverse repo rate, the rate at which commercial banks deposit money with the central bank, by 25 basis points to 2 percent from 1.75 percent.

It also raised its repo rate, at which it lends to banks, by 25 basis point to 2.5 percent.

This followed the U.S. Federal Reserve's decision to raise its target range for the federal funds interest rate by a quarter point, to between 1.75 percent and 2 percent. (Reporting by Davide Barbuscia, Saeed Azhar and Katie Paul Editing by Alison Williams)