The Saudi Central Bank decided to raise the repo rate by 25 basis points to 5.25 percent, and raise the reverse repo rate by 25 basis points to 4.75 percent.
In a brief answer, What are the repo and the revers repo? What impact will this decision have on the state of the Saudi economy in general?In addition, what are the most prominent sectors affected?
Solved by verified expertThe repo rate is the rate at which the Saudi Central Bank lends money to commercial banks in the country. The reverse repo rate is the rate at which the Saudi Central Bank borrows money from commercial banks.
The decision to raise the repo rate will make it m
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The most prominent sectors affected by this decision will be those that rely heavily on borrowing, such as the construction and real estate sectors. The higher interest rates will make it more expensive to finance projects in these sectors, which will lead to slower growth in these areas.
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