The Saudi Arabian Monetary Agency (SAMA), the central bank of the Kingdom of Saudi Arabia, raised its reverse repurchase rate by 25 basis points to 0.50 percent, a decision it said was made "in line with domestic and international financial market conditions."
But SAMA, which pegs its riyal currency to the U.S. dollar, left the benchmark repurchase rate unchanged at 2.0 percent.
The last time the repo rate was changed was in January 2009 when it was cut by 50 basis points to the current level of 2.0 percent, the culmination of five consecutive cuts starting in October 2008 when the rate was cut from 5.0 percent.
The last time SAMA changed the reverse repo rate was in June 2009 when it also was raised by 25 basis points to 0.25 percent.
The Saudi Arabian Monetary Agency issued the following statement on Dec. 16:
"SAMA has decided to raise the reverse repo rate from 25 basis points to 50 basis points with immediate effect. The repo rate remains unchanged at 200 basis points. This decision was made in line with domestic and international financial market conditions."