Monday, May 30, 2011

Saudi Arabian Monetary Agency Holds Reverse Repo Rate at 0.25%

The Saudi Arabian Monetary Agency (SAMA) held its overnight reverse repurchase rate at 0.25% and the benchmark repurchase rate at 2.00%.  Saudi Arabia's money supply rose 17.2% YoY in April, and the central bank's foreign assets increased 13.2% YoY.  Lending to the private sector increased to SR802.5 billion in April, from SR798.2 billion in March, and up from SR750.6 billion in April 2010.  Saudi Arabia reported annual inflation of 4.8% in April this year.

SAMA last cut its overnight reverse repo rate by 25 basis points to 0.25% in June 2009.  The Saudi Arabian authorities have plans to spend as much as $400 billion (Dh1.46 billon) on its five-year infrastructure development program, as part of a larger spending program including King Abdullah's recent $130bn social benefits package.  The Saudi Arabian economy grew 3.8% in 2010 according to SAMA.


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