Monday, December 15, 2008

Saudi cenbank cuts interest rates by 50 bps

RIYADH, Dec 16 (Reuters) - Saudi Arabia's central bank reduced its two key policy interest rates on Tuesday by 50 basis points to help boost banking sector liquidity and meet domestic credit demand, the central bank said.

The Saudi Arabian Monetary Agency (SAMA) cut its benchmark repurchase rate to 2.5 percent from 3 percent, it said in a circular reported by bankers in Riyadh and Dubai and the official Saudi Press Agency.

It also reduced the reverse repurchase rate to 1.5 percent from 2 percent.
The moves were taken "in line with recent monetary measures taken by SAMA to ensure adequate system liquidity to meet genuine domestic credit demand and in view of evolving global development," SAMA said in the circular

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