The Qatar Central Bank (QCB) will make sure that the country’s booming real estate sector is not exerting any significant pressure on the headline inflation rate.
The QCB Governor H E Sheikh Abdullah Saoud Al Thani noted that the demand-supply imbalance in the housing market will be corrected before rental prices exert any major pressure on inflation over the medium term.
“As of now, we do not see any significant upside risk to the inflation scenario in 2013. With prospects of weaker global commodity prices and a firmer US dollar, headline inflation is expected to stay benign in 2013 due to the persistence of excess supply in the real estate sector. As infrastructure related construction activities picks up and the expatriate labour force increase, the demand-supply imbalance has to be corrected”, the QCB Governor told specialised banking magazine Banker Middle East in an interview.
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