The Saudi Central Bank announced raising the repurchase agreement rate by 0.5% from 1.25TP3T to 1.75%, as well as raising the reverse repo rate by 0.5% from 0.75TP3T to 1.25%. This is in line with the Saudi Central Bank's goal of maintaining monetary and financial stability.

Repo, or repurchase agreement, is defined as one party lending money against a roughly equivalent value of securities, often treasury bills. This market exists to allow companies that hold a lot of securities but are short on liquidity to borrow money cheaply. This market allows parties with a lot of money to make a small return with limited risk, because they hold the securities as collateral.

Repo is defined as the lending of money against a roughly equivalent value of securities, often treasury bills, which are held as collateral.