Narrow Money Stock Increases in the Sultanate in October 2018

Muscat, With regard to monetary aggregates as at the end of October 2018, narrow money stock (M1), when measured on year-on-year (YoY) basis, registered an increase of 0.4 percent to RO 5 billion, according to the bulletin published by the Central Bank of Oman (CBO).

Quasi-money (Rial Omani saving and time deposits, certificates of deposit issued by banks, margin deposits and foreign currency denominated deposits) witnessed YoY growth of 5.3 percent during the period.

Broad money supply M2 (M1 plus quasi-money) stood at RO 16.7 billion as at the end of October 2018 and witnessed a rise of 3.8 percent during the period.

The domestic interest rate generally exhibited an upward trend following that prevailing in USA due to currency peg arrangement. The weighted average interest rate on RO deposits increased from 1.670 percent in October 2017 to 1.810 percent in October 2018 while the weighted average RO lending rate increased from 5.190 percent to 5.298 percent during the same period.

The overnight Rial Omani domestic inter-bank lending rate increased to 2.317 percent in October 2018 from 1.146 percent a year ago.

Source: Oman News Agency