Thursday 17 / September / 2026
Muscat: The Central Bank of Oman on Wednesday has decided to raise the interest rate on repurchase (repo) operations with local banks by 25 basis points (0.25%), to become 4.5% effective from September 17, 2026 (Thursday).
This decision comes within the framework of the monetary policy directions of the Central Bank of Oman, and is consistent with the fixed exchange rate system of the Omani Rial, and contributes to maintaining monetary and financial stability in the Sultanate of Oman.
This measure also helps to reduce inflationary pressures and maintain price stability, and helps to reduce unwanted capital flows across borders, in addition to boosting investor confidence by reducing the risks of exchange rate fluctuations.
US Federal Reserve raises interest rates
The US Federal Reserve has raised its benchmark interest rate by 25 basis points, marking its first rate increase since 2023, as policymakers respond to persistent inflationary pressures and changing economic conditions.
The Federal Open Market Committee (FOMC) increased the target range for the federal funds rate by a quarter percentage point to 3.75-4 per cent. The decision was approved unanimously by a 12-0 vote.
The rate increase was broadly in line with market expectations, with traders assigning an over 90 per cent probability to a 25-basis-point hike ahead of the decision.
