Saudi Arabia's Central Bank (SAMA) raised the rate of repo arrangements by 0.5% (from 1.25% to 1.75%).
In addition, SAMA increased the rate of reverse repo agreements by 0.5% (from 0.75% to 1.25%), as part of efforts to maintain monetary and financial stability.
Following the announcement by the Federal Reserve Board on 4th May 2022 to increase Interest on Reserve Balances (IORB) by 50 basis points, this decision was taken.
The CBUAE's Base Rate, which is anchored to the Federal Reserve's IORB, represents the CBUAE's monetary policy stance. It also acts as a floor for overnight money market rates.
In addition, the UAE Central Bank will raise the Overnight Deposit Facility (ODF) Base Rate by 50 basis points from Thursday, May 5, 2022.
In the meantime, the Central Bank of Kuwait (CBK) raised the discount rate from 1.75 percent to 2.00 percent effective May 5.
