CBO raises repo rate by 25 basis points

Muscat: The Central Bank of Oman (CBO) on Thursday raised the interest rate on repurchase operations for local banks by 25 basis points to 6 per cent.

In a statement, the CBO said this move comes as part of the bank’s monetary policy aimed at maintaining the fixed exchange rate system for the Omani rial and with the structure and nature of the Omani economy.

It also includes a number of advantages for the Sultanate of Oman, including the stability of the Omani Rial, reduction of the capital outflow, and confidence enhancement among investors by removing the risk of exchange rate fluctuations.