Muscat, February 02 (QNA) – After the US Fed’s recent announcement to raise its key policy rate, the Central Bank of Oman (CBO) increased its repo rate for local banks at the similar rate of 25 basis points to 5.25%.
A CBO’s statement carried by Oman News Agency said that the CBO’s monetary policy target is to sustain and maintain its fixed exchange rate.
This policy is aligned with the structure and nature of the Omani economy. There are a number of advantages for the Sultanate of Oman that are derived from this policy among which are the stability of the Omani Rial, mitigation of capital outflow and promoting certainty among investors by removing exchange rate risk.
The CBO also cautioned banks not to increase the cost of borrowing to consumers given ample liquidity in the system.