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Gulf inflation pressure temporary: Saudi cbanker

“All Gulf states are passing through a phase of exceptional growth,” Hamad Saud al-Sayyari said at a round table discussion with fellow central bank governors in Kuwait.

“This creates some inflationary pressures in some states, in some sectors. This is a temporary phenomenon,” he said. Gulf states would take measures to tackle inflation, he said, without elaborating.

Kuwait’s decision to abandon the peg to the dollar threw into disarray plans to create single currency in the world’s top oil-exporting region by 2010.

Sayyari said meeting the deadline would require “exceptional effort”, repeating a line he has maintained since Gulf Arab central bankers failed at talks last month to iron out differences over the single currency project.

Deciding on a new deadline could only be made by the rulers of the Gulf, Sayyari said.

Setting up a joint central bank, regarded as a key pillar of the project, was still under review, he added.