Saudi Arabia : Selected Issues.

This Selected Issues paper assesses the importance of oil and interest rate spillovers for Saudi Arabia. Oil prices have fallen by more than 40 percent since mid-2014 while the Federal Reserve is expected in the coming months to begin raising its policy rate at the beginning of a gradual tightening...

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Detalles Bibliográficos
Autor Corporativo: International Monetary Fund. Middle East and Central Asia Dept
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2015.
Colección:IMF Staff Country Reports; Country Report ; No. 2015/286
Acceso en línea:Full text available on IMF
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520 3 |a This Selected Issues paper assesses the importance of oil and interest rate spillovers for Saudi Arabia. Oil prices have fallen by more than 40 percent since mid-2014 while the Federal Reserve is expected in the coming months to begin raising its policy rate at the beginning of a gradual tightening cycle. Given the importance of oil to the economy and the peg of the riyal to the U.S. dollar, these are two key developments for Saudi Arabia. Although a temporary drop in oil prices would likely have little effect on the economy and banks given the financial cushions that have been built-up, a longer-lasting period of low oil prices would have a more significant impact. 
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