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# Central Bank of Oman raises its repo rate to 4.5%
- URL: https://www.theglobalbanker.com/central-bank-of-oman-raised-its-repo-rate-to-4-5/
- Published: 2026-09-19T12:14:41.000Z
- Updated: 2026-10-02T10:06:11.000Z
- Description: The Central Bank of Oman raised its repo rate by 25 basis points to 4.5% from 17 September, citing the fixed exchange-rate system and financial stability.
- Author: TGB Editorial Team
- Tags: Central Banks, MENA

The Central Bank of Oman raised the repo rate on operations with local banks by 25 basis points to 4.5%. The new rate took effect on 17 September, according to Times of Oman and a Zawya report. The central bank linked the move to Oman’s fixed exchange-rate system. It also cited monetary and financial stability and the need to contain inflationary pressures.

The repo rate influences the cost at which local banks obtain short-term funding from the central bank. Oman’s rial is pegged to the US dollar. The move followed the US Federal Reserve’s 25-basis-point rate increase on 16 September, and most other Gulf central banks also raised their policy rates the same day, while Kuwait held.

#### PEG SHAPES THE POLICY RESPONSE

The central bank’s explanation connected the rate increase to maintaining the peg and preserving stability. It said the measure would also help reduce unwanted cross-border capital flows and boost investor confidence by reducing the risks of exchange-rate fluctuations.

The Fed raised the target range for the federal funds rate to 3.75%–4%, its first increase since 2023, in a unanimous 12–0 vote. 

The increase was the central bank’s first since July 2023, Zawya reported.