Muscat: The Central Bank of Oman (CBO) on Thursday decreased its repo rate for local banks by 50 basis points to 5.50 percent.
The Central Bank of Oman'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. Several advantages for the Sultanate of Oman are derived from this policy among which are the stability of the currency, avoidance of capital outflow, and promoting certainty among investors by removing exchange rate risk.
It may be noted that the US Federal Reserve’s decision to cut interest rates by 0.50 percentage points was a significant departure from previous monetary policy.
social
The US Federal Reserve, led by Chair Jerome Powell, made a significant move by cutting interest rates for the first time in four years on September 18, 2024.
The Federal Reserve lowered the federal funds rate by 50 basis points, or 0.5 percent, bringing it to a range of 4.75 percent to 5 percent.
This action marks the first interest rate cut since 2020 and aims to support ongoing economic growth.
Oman Observer is now on the WhatsApp channel. Click here
