Oman central bank raises rate on capital deposits to 1.5% from 1.0%

Dubai: Oman’s central bank said on Thursday it has raised the interest rate it offers on capital deposits — deposits which banks and other financial firms are required to keep at the central bank — by 0.5 percentage point to 1.5 per cent. The central bank cited recent rises in Omani market interest rates, which have been climbing in response to hikes in US rates. The higher capital deposit rate is effective retroactively to January 1 this year, the central bank said. It last adjusted the rate in February 2015, cutting it by 0.5 percentage point.