NO. 47


Financial and Banking News

Public Finance

Saudi Rate Rise Restores Differentials

Bankers in Riyadh say that they are "comfortable" with SAMA'sunexpected raising of the repo rate by 15 basis points (bp) to 6.15% on 15August. They say that the spread between the rates offered on US Treasuries andSaudi Development Bonds had fallen to as low as an unsustainable 5-10 basispoints and that this rate rise merely restores differential vis-a-vis USTreasuries. Following the...