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FINANCIAL NEWS
Oman inflation to reach 5% in 2010
26 Apr 2010
(MENAFN) Oman’s Economy Minister, Ahmad Mekki, said that the country’s inflations is expected to reach 5 percent this year, due to imported price pressures, Reuters reported.
The minister also said that the country’s budget should not end in a deficit if oil prices remain high.
Central Bank Executive President, Hamood Al-Zadjali, also expected Oman’s inflation to range between 4 and 5 percent this year, because Oman is importing inflation being pegged to the US dollar.
Last month, Al-Zadjali said that accelerating inflation should not cause any difficulties to the country, which lacks independent monetary policy due to its US dollar peg. He also said that provisions of local banks regarding their exposure to debt-laden state-owned conglomerate Dubai World are adequate, but did not give further details.
It is worth mentioning that Oman’s annual inflation maintained a modest upward trend to reach an eight-month high of 2 percent in February, but remained well below the June 2008 high of 13.7 percent.
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