MUSCAT: The nation’s narrow money stock (M1), when measured on a year-on-year basis, grew by 4.4 per cent to OMR5.4 billion at the end of April 2016. This rise was a result of the increase in currency with the public by 8.4 per cent and an increase of 3.2 per centin Rial Omani (RO) designated demand deposits.
Quasi-money (RO savings and time deposits, certificates of deposit issued by commercial banks, margin deposits and foreign currency denominated deposits) witnessed an appreciable growth of 13.9 per cent during the period. The broad money supply M2 (MI plus quasi-money) stood at OMR15.7 billion at the end of April 2016, up from OMR14.2 billion one year ago, registering an increase of 10.4 per cent during the period.
With respect to the domestic interest rate structure of conventional banks, the weighted average interest rate on RO deposits firmed up from 0.908 per cent in April 2015 to 1.083 per cent in April 2016, while the weighted average RO lending rate decreased from 4.945 per cent to 4.796 per cent during the same period. Also, the overnight Rial Omani domestic inter-bank lending rate rose to 0.401 per cent in April 2016 from 0.197 per cent one year ago.
