Riyadh-Mubasher: Saudi banks are expected to raise interest rates in the next period, Al-Watan newspaper reported, citing Said Al-Shaikh, senior economist at the National Commercial Bank.
He added that the local banks will follow suit of their US peers, especially as the Saudi riyal is pegged to the US dollar.
In December, the Federal Reserve had lifted the interest rate by 0.25%.
If Saudi Arabian Monetary Agency (SAMA) does not take such a step, depositors will convert their funds from riyal to dollar, which will reflect negatively on the riyal value.
