Saudi central bank sees positive economic performance ahead

The governor of the Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank, Ahmed al-Kholifey said expects to see positive economic performance in the coming period, Reuters has reported.

"From the indicators we saw in the first half, the non-oil sector’s growth is still positive. From the indicators we saw, especially for consumption, they’re also positive, and I hope that will reflect on the non-oil sector," he said.

The Saudi Central Bank was not worried about deflation because consumption was rising, another SAMA official said. They also said there was no reason for the Saudi riyal to fall in the forward foreign exchange market, adding that there was no concern about banks' bad loans.

Asked about the direction of Saudi interbank money rates (SAIBOR), Ayman al-Sayari, deputy central bank governor for investment, said: "Today's levels reflect the level of liquidity in the system, which appears to be ample. We don't expect any aggressive movements in SAIBOR up or down, other than perhaps a reflection of the interest rates in the United States."