The Saudi Central Bank, known as SAMA, may need to inject liquidity into the banking sector like it did last year as interbank rates sit at their highest since 2001, London-based Capital Economics said on Thursday.
SAMA did not immediately respond to a request for comment.
“A saving grace in the rise in SAIBOR (Saudi interbank offer rate) to close to 6% is that, compared to the spike in the middle of last year, the spread over the U.S. Libor is far lower at close to 40bp,” the research firm said in a note.
Read More: Saudi Central Bank May Take Measures to Provide Liquidity to Banks, Says Capital Economics