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الاقتصادية
SOFR exceeds 5% as Fed decision nears
The three-month reference interest rate "SIBOR" rose to 5.09% ahead of the U.S. Federal Reserve's decision, reaching its highest level in over four months. This increase comes amid rising market expectations of another U.S. interest rate hike. The rise reflects increased monetary risks and expectations of a rate hike, driven by factors that could raise the cost of unsecured funding for banks, especially amid growing uncertainty about the direction of U.S. monetary policy. Despite the rise in SIBOR, liquidity in the Saudi banking sector remains abundant, as secured financing rates have remained stable. Repurchase agreement data indicate a surplus of liquidity, while margins are focused in the upcoming months, suggesting that banks are hedging against potential surprises in future policies.
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