The Saudi Arabian Monetary Authority announced that it has decided to raise the reverse repo rate from 50 basis points to 75 basis points and to maintain the repo rate at 200 basis points, based on recent developments in local and international financial markets. This decision takes effect immediately, according to an announcement by the Authority on its website.

This decision comes immediately after the U.S. Federal Reserve’s decision to raise the interest rate by 25 basis points to a range between 0.5 % and 0.75 % from the range of 0.25 % to 0.5 %.

In its statement, the U.S. Federal Reserve reaffirmed its outlook for the U.S. economy, noting that conditions allow for the resumption of gradual interest rate hikes, and it now expects three rate hikes next year instead of two.