Monetary Policy Eased in Saudi Arabia
April 14, 2009
The Saudi Arabian Monetary Agency (SAMA) cut its reverse repo rate today by 25 basis points to 0.5%. Such was the second easing of 2009 following a 75-bp cut on January 19th. There were five cuts during 2008 totaling 250 basis points and three cuts in the last two months of 2007 totaling another percentage point. At the onset of the global financial and economic crisis in August 2007, the reverse repo rate was ten times higher than now at 5.0%, and that level turned out to be the cyclical peak. A statement released by SAMA cited receding inflationary pressure.
Copyright 2009 Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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