CBO Lowers Repo Rate by 25 Basis Points from Oct 30: What This Means for Businesses and Investors in Oman
Muscat: The Central Bank of Oman (CBO) has reduced its repurchase agreement (repo) rate for local banks by 25 basis points, bringing it down to 4.50%, effective Thursday, October 30, 2025. This move follows a similar rate cut by the U.S. Federal Reserve earlier this week.
This decision is consistent with the CBO’s monetary policy framework, which is influenced by the fixed exchange-rate peg of the Omani rial to the U.S. dollar, ensuring currency stability and maintaining investor confidence.
The reduction in the repo rate is anticipated to lower funding costs for banks and the private sector, thereby promoting credit growth, investment, and consumption within the non-oil sectors of the economy.
This latest adjustment comes after a previous cut on September 17, when the repo rate was reduced to 4.75%, reflecting Oman’s alignment with key dollar-pegged Gulf Cooperation Council (GCC) economies.
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The Central Bank of Oman’s decision to lower the repo rate to 4.50% signals a strategic easing of monetary policy aimed at stimulating credit growth and investment outside the oil sector. For businesses, this creates a cost-effective borrowing environment, encouraging expansion and innovation, while investors should focus on opportunities in the diversifying non-oil economy. However, careful monitoring of currency stability and inflation dynamics remains crucial to mitigate potential risks.
