Central Bank of Oman Cuts Repo Rate by 25bps: Impact on Business Financing and Investment Opportunities
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 decision follows a similar adjustment made by the U.S. Federal Reserve earlier this week.
This move is in line with the CBO’s monetary policy, which is influenced by the fixed exchange rate of the Omani rial to the U.S. dollar, ensuring both currency stability and 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 economy.
This most recent change follows a previous cut on September 17, when the CBO lowered the repo rate to 4.75%, highlighting the Sultanate’s trend of aligning its monetary policy with other major dollar-pegged economies in the GCC.
Special Analysis by Omanet | Navigate Oman’s Market
The Central Bank of Oman’s recent decision to lower the repo rate to 4.50% signals a strategic move to reduce funding costs for local banks and stimulate credit growth in the non-oil sector. This presents significant opportunities for businesses, particularly in sectors poised for expansion, while also creating potential risks for investors if borrowing levels lead to over-leverage. Smart investors and entrepreneurs should closely monitor this shift, as increased liquidity could foster more favorable conditions for innovation and growth in Oman’s economy.
