DUBAI: Saudi Arabia's central bank said on Wednesday it had cut key interest rates to preserve monetary stability, following the US 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 US dollar and the country's central bank follows the US Federal Reserve on interest rate moves.