Saudi Arabia Says Fiscal Expansion to Balance Out Fed Hikes

Saudi Arabia will rely on fiscal loosening to “balance out” the tight monetary policy imported from the US Federal Reserve, a senior government official said, even as turmoil in oil markets injects more uncertainty for the kingdom’s budget.

Speaking in an interview with Bloomberg Television on Thursday, Minister of Economy and Planning Faisal bin Fadhil Alibrahim described Saudi Arabia as having an “expansionary fiscal environment” that he said will offset the impact of higher interest rates.