Muscat, November 03 (QNA) – The Central Bank of Oman increased the interest rate on repurchases of local banks by the same increase approved by the US Federal Reserve, which is 75 basis points, to become 4.50%.
This comes in line with the monetary policy of the Central Bank of Oman, which aims to maintain the fixed exchange rate system for the Omani riyal and with the structure and nature of the Omani economy, the bank said in a statement.
Raising the interest rate includes a number of advantages for the Sultanate of Oman, such as the stability of the Omani riyal, reducing capital migration abroad and enhancing confidence among investors by removing the risk of exchange rate fluctuations.
The Central Bank of Oman urged licensed banks not to increase the cost of lending to consumers due to the abundance of liquidity in the banking system.
(QNA)