SAMA chief lauds global efforts to contain inflation

Saudi Central Bank governor praised the “well-calibrated” monetary policies adopted by global financial institutions to tackle inflation and bolster the resilience of the world economy amid diverse challenges.

Ayman Al-Sayari spoke at a session titled “Global Economic Outlook and Ongoing Challenges” during the third meeting of Finance Ministers and Central Bank Governors of G20 held under the Brazilian presidency, according to statement issued on the apex bank’s X handle.

He presented a comprehensive perspective on global economic challenges and policies.

The top Saudi official stressed the importance of ensuring that the nominal growth rate exceeds the interest rate to mitigate risks to global growth in the near term. This principle advocates for sustaining economic expansion while managing debt dynamics effectively.

Al-Sayari highlighted significant medium-term risks confronting the global economy, including ongoing geopolitical conflicts and trade fragmentation. These factors contribute to uncertainty and potential volatility in the international economic landscape.

Regarding energy transition efforts, he acknowledged the global scale-up of renewable energy usage but expressed concern over increased fossil fuel consumption and carbon emissions in 2023. Al-Sayari cautioned against rushed actions and underscored the need for a balanced approach toward achieving sustainability goals without compromising economic stability.

“We are all for reducing greenhouse gas emissions,” the SAMA chief said.

Al-Sayari identified rising income inequality as a critical issue. He underscored the importance of implementing targeted social benefits and well-designed labor market policies to bridge this gap.