The figures for M3 money supply, the broadest measure of all the cash in the economy, indicate that Bahrain will continue to face upward pressure on inflation.

At 6.2 per cent, Bahrain currently has the lowest level of inflation in the GCC.

For the year to the end of May, M3 money supply grew by 32.7 per cent, compared to 32.4 per cent in the previous month.

During May, Bahrain’s banking sector grew its assets by 5.1 per cent, to $44bn.