Average repo rates, which are a key tool for the Central Bank of Oman (CBO) in managing monetary policy, exhibited a pattern of relative stability during the first half of this year, data furnished by the National Centre for Statistics and Information (NCSI) shows.
In January 2023, the average repo rate stood at 5 percent but experienced slight fluctuations in subsequent months. In February, the rate increased marginally to 5.241 percent, followed by a slight increase to 5.323 percent in March.
By April, the rate reached 5.5 percent, marking a notable shift. May saw a further increase to 5.726 percent. However, June’s data revealed that the average repo rate had increased slightly to remain at 5.75 percent.
Repo rates play a pivotal role in the central bank’s efforts to influence economic conditions and manage monetary policy. They can impact borrowing costs for financial institutions and, subsequently, influence lending rates for businesses and consumers. Furthermore, repo rates can affect investment decisions and overall economic activity within the country