CBO keeps repo rate unchanged at 6%

CBO keeps repo rate unchanged at 6%

Muscat – The Central Bank of Oman (CBO) decided to keep its repo rate for local banks fixed at 6%, following the US Federal Reserve’s decision to leave its key policy rate unchanged at the range of (5.25% – 5.50%). The repo rate is the policy rate that allows commercial banks to acquire short-term liquidity […]Muscat – The Central Bank of Oman (CBO) decided to keep its repo rate for local banks fixed at 6%, following the US Federal Reserve’s decision to leave its key policy rate unchanged at the range of (5.25% – 5.50%).

The repo rate is the policy rate that allows commercial banks to acquire short-term liquidity from the Central Bank of Oman as the lender of last resort.

The CBO in its statement said that its monetary policy target is to sustain and maintain its fixed exchange rate. This policy aligns with the structure and nature of the Omani economy, the central bank added.

‘There are several advantages for Oman derived from this policy, including ensuring the stability of the Omani rial, mitigating capital outflow, and promoting certainty among investors by removing exchange rate risk,’ said the sultanate’s central bank. CBO keeps repo rate unchanged at 6%