No change in Saudi monetary policy, SAMA Governor says 2 Riyadh

SPA - He said that inflation in the Kingdom fell in August to 10.9 from 11.1 last July, despite a wave of high prices globally, and the
100-percent-increase of the cost of freight and insurance.

The government spending as well as the capacity of local economy have
increased, Al-Sayyari said, noting that the balance of supply and
demand of housing rates might take a period of up to two years.

"We rather prefer enhancing supply forces through encouraging the
provision and finance of homes than interfering to bring down house
rents in the Kingdom", he stated.

In response to a question, he denied reports that SAMA is planning to
issue new 1000 category bank notes.

SAMA Governor described the procedures taken by U.S. administration
to address the current financial problems as bold and in the right
direction, adding that the impact of the crisis on both the Saudi
economy and the performance of Saudi banks is limited.
--SPA