Monetary and Financial Update: Pace of Slowdown in Monetary Aggregates to Moderate in 2016

Following a rapid slowdown of monetary aggregates towards the end of 2015, we now expect some moderation in the pace of slowdown in the Kingdom in 2016. The current series of sovereign bond issuances should reassure investors of the governments commitment to maintain a high level of spending on the economy, which will continue to be the growth driver for credit to both consumers and corporations. We expect annual growth in credit to the private sector to slow in 2016.