Muscat: Fresh statistics from the CBO revealed that the expansion in money supply was driven primarily by a 13% surge in narrow money, alongside a modest 1% increase in quasi-money.
At the same time, cash held by the public fell by 2.13%, while demand deposits surged by 16.2%, signaling a shift in liquidity preferences and stronger banking activity.
The report also highlighted a downward trend in interest rates among conventional commercial banks. The weighted average interest rate on Omani Rial deposits dropped from 2.679% in September 2024 to 2.568% in September 2025, while the weighted average rate on Omani Rial loans eased from 5.604% to 5.479% over the same period.
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In the interbank market, the average overnight lending rate decreased sharply to 3.815%, compared to 4.896% a year earlier. This decline aligns with broader monetary conditions, particularly the drop in the weighted average rate on repurchase (repo) operations, which fell to 4.892% from 5.790%, in line with the US Federal Reserve’s policy direction.
