Saudi Hands Tied as Rising Rates Risk Worsening Economy Woes

  • Dollar-linked riyal means rate cut to boost growth unlikely
  • Government withdrawals amid oil slump led to liquidity crunch

Assessing the Health of the Saudi Economy

Saudi Arabia’s currency peg is forcing the central bank to look beyond rate cuts to spur growth, as a slowdown driven by lower oil prices has consumers watching their wallets and contractors facing payment delays.

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