A report issued by the Central Bank of the Sultanate of Oman in its annual report on financial stability for the year 2022 showed that the risks related to financial stability in the Sultanate have eased, the banking sector has also maintained its ability to absorb various shocks without negatively affecting the credit supply and the real economy.
The report focuses on the measures taken by the institutions of the Sultanate of Oman and the Central Bank to mitigate the impact of the economic crisis. It shows the important role played by the financial sector in providing credit and providing financial services during the pandemic period, which effectively contributed to accelerating the pace of economic recovery supported by high oil prices.
The report explains that rising geopolitical tensions in Europe are fueling rising inflationary pressures around the world. In addition, monetary tightening policies to counter these pressures may negatively affect economic growth, especially in sectors that are still in the stage of recovery from the pandemic. Despite this, inflation expectations in the Sultanate of Oman remain moderate.
The rise in oil revenues provided the government with financial space to confront inflationary pressures and to intervene in a targeted manner to deal with the negative effects of the recent global monetary decisions.
Source (Al-Araby Al-Jadeed Newspaper, Edited)
