CBO increases interest rates
Published: 10:05 AM,May 04,2023 | EDITED : 02:05 PM,May 04,2023
Muscat - The Central Bank of Oman (CBO) has increased the interest rates by 25 basis points become 5.75 percent, following the decision by the US Federal Reserve to do the same in order to curb inflation.
The statement issued by CBO said the decision 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 in line with the structure of the Omani economy.
Monetary policy also includes a number of advantages for the Sultanate of Oman, including but not limited to the stability of the riyal, Omani investment, reduces the outflow of capital, and enhances confidence among investors by removing the risk of exchange rate fluctuations.
Increased interest rates mean that the costs of borrowing for individuals and businesses become higher. This in turn means people should in theory spend less money and therefore reduce demands for goods and services which should reduce the price of them.
The statement issued by CBO said the decision 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 in line with the structure of the Omani economy.
Monetary policy also includes a number of advantages for the Sultanate of Oman, including but not limited to the stability of the riyal, Omani investment, reduces the outflow of capital, and enhances confidence among investors by removing the risk of exchange rate fluctuations.
Increased interest rates mean that the costs of borrowing for individuals and businesses become higher. This in turn means people should in theory spend less money and therefore reduce demands for goods and services which should reduce the price of them.