Saudi Arabia Follows Fed With Rate Increase as Oil Slumps

Saudi Arabia raised interest rates for the first time since 2009, matching the U.S. Federal Reserve’s move even as oil revenue slumps and economic growth is slowing.

The world’s biggest oil exporter increased the reverse repo rate by a quarter-point to 0.5 percent. The change was “in line with domestic and international financial market conditions,” the Saudi Arabian Monetary Agency said, according to the official Saudi Press Agency. The central banks of the United Arab Emirates, Kuwait and Bahrain also raised rates.