Muscat: The Central Bank of Oman has reported a robust 11.5% increase in the broad money supply, reaching RO 23.7 billion by the end of May 2024. This substantial growth is attributed to a 7.3% rise in narrow money and a 13.1% increase in quasi-money, including total savings deposits, time deposits in Omani riyals, certificates of deposit, margin accounts, and foreign currency deposits.

Despite the overall increase, cash held by the public decreased by 3.6%, while demand deposits saw a significant boost of 10.4%. In tandem with these changes, the interest rate landscape has shifted, reflecting broader economic trends.

The weighted average interest rate on deposits in Omani riyals rose from 2.242% in May 2023 to 2.627% in May 2024. Similarly, the average loan rate increased from 5.443% to 5.621% over the same period. The interbank lending market also experienced an uptick, with the average rate for overnight lending climbing to 5.501% from 5.295% last year.

This upward trend in interest rates aligns with global financial policies, particularly the US Federal Reserve’s strategies. It influenced the weighted average interest rates on repurchase operations, which increased to 6% from 5.726% in the previous year.