RIYADH, May 3: Saudi Arabia, which pegs its currency to the dollar, reduced its reverse repurchase rate by 25 basis points on Saturday after a US interest rate cut this week, but left its benchmark lending rate steady.

The Saudi Arabian Monetary Agency cut the reverse repo rate to 2 per cent from 2.25 per cent and continued a policy of leaving its benchmark repurchase rate at 5.5 per cent, according to a SAMA circular sent to banks, a copy of which was emailed to Reuters.