Saudi c.bank cuts repo, reverse repo rates by 25 bps after Fed

Saudi Arabia's central bank said on Wednesday it had cut key interest rates to preserve monetary stability, following the U.S. Federal Reserve decision to cut interest rates for the first time in over a decade.

DUBAI, July 31 (Reuters) - Saudi Arabia's central bank said on Wednesday it had cut key interest rates to preserve monetary stability, following the U.S. Federal Reserve decision to cut interest rates for the first time in over a decade.

It cut its repo rate, used to lend money to banks, to 275 basis points from 300 bps, and the reverse repo, the rate at which commercial banks deposit money with the central bank, by the same margin to 225 bps.

The Saudi riyal is pegged to the U.S. dollar and the country's central bank follows the U.S. Federal Reserve on interest rate moves.

(Reporting by Asma Alsharif and Marwa Rashad, writing by Saeed Azhar, editing by Davide Barbuscia)

((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))

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