Claire Lombardelli, Deputy Governor of the Bank of England, said that she did not rule out voting in favor of raising interest rates again in December, but indicated that she did not yet have enough information to take a final position, according to an interview published by The Guardian newspaper on Tuesday.
Lombardelli had joined the majority in the Monetary Policy Committee, which voted last week by 8 votes to one to raise the key interest rate to 4 percent, from 3.75 percent, in the first increase since August 2023. She indicated, according to the minutes of the meeting, that a further hike may be necessary in the near term.
“I think it depends on developments in the conflict and energy prices, as well as on broader economic data, and how these factors interrelate,” Lombardelli said, in response to a question about the possibility of raising rates again in December. She added: “But I will not rule out this possibility, and at the same time, I do not yet have sufficient information,” according to Reuters.
In another context, Lombardelli said that young people in Britain are bearing the brunt of the economic slowdown, in light of companies’ reluctance to hire against the backdrop of the repercussions of the war in the Middle East.
She described the situation as “an economy moving at a low speed,” noting a noticeable decline in employment operations, while there was no significant increase in layoffs. She added that the labor market is witnessing what she described as an equation of “low employment and low layoffs.”
A survey issued by the Employment and Employment Union and KPMG on Monday showed a slowdown in the British labor market during October, with employment in permanent jobs declining for the first time in four months, days after the Bank of England decided to raise interest rates.
The Sultanate of Oman expects to meet the requirements for promotion to emerging market status with global index provider FTSE Russell next year, supported by three expected listings, according to what the CEO of the Muscat Stock Exchange, Haitham Salem Al Salmi, said.
Last month, the Muscat Stock Exchange was included on the FTSE Russell watch list, in preparation for the possibility of reclassifying it from a frontier market to an emerging market, which may enhance the interest of foreign investors and money flows from investment funds that track indices.
Al-Salmi told Reuters: “We have not been promoted yet, but we are fully confident that we will meet the requirements for promotion.”
This upgrade represents an important step in Oman’s efforts to deepen its capital markets, an ongoing challenge faced by smaller Gulf stock exchanges as they compete to attract international capital.
Al-Salmi explained that the listing of the Oman Indian Fertilizer Company (OMEFCO) last July, and the secondary listing of the “Asyad Shipping” company, would help the Sultanate meet the quantitative standards set by FTSE Russell.
He added that the Muscat Stock Exchange also expects to carry out three initial public offerings next year for companies currently affiliated with the Oman Investment Authority, without revealing the names of the potential companies, noting that one of them operates in the communications sector, and the other in the energy facilities sector.
Oman expects to obtain approval for the upgrade in the next FTSE Russell update in April, with the reclassification taking full effect after five to six months.
“We are talking about October 2027,” Al-Salmi said, adding that the upgrade at the competing index provider, MSCI, still requires a longer time.
He explained that the matter requires preparing the company, completing a performance record that extends for a year, and then remaining on the monitoring list for two years, given the different standards approved by MSCI, indicating that the path may take at least four years.
Expansion plans
The Muscat Stock Exchange aims to launch the first exchange-traded fund before the end of the year, in addition to starting trading in futures contracts and financial derivatives by 2028, either independently or through a partnership with the Gulf Commodity Exchange in Dubai.
Al-Salmi said that the stock exchange is also preparing to list on the stock market during the next five years, by completing a new structure for the group that includes the stock exchange, the Central Securities Depository Company, the clearing house, and the information technology unit.
He added: “We are working to enhance our financial results, so that we are ready for listing within five years.”
Meanwhile, increasing liquidity remains a key focus in the stock exchange's efforts to attract international investors.
The location of Oman's southern coast, outside the Strait of Hormuz, the main choke point in the war with Iran, has helped the stock market rise by about 25 percent since the beginning of the year. The IPO of Omifco in July also witnessed strong demand, following the rise in fertilizer prices.
Al Salmi added that foreign investors represent about 19 percent of the total trading activity on the Muscat Stock Exchange, which is a higher percentage compared to last year.
He pointed out that the stock exchange may also consider adopting trading on Friday, similar to the Dubai market, but this step will still depend on a significant increase in the participation of foreign investors.
He said: “If we see that the participation of foreign investors has risen to about 40 or 50 percent, then this option can be studied.”
The annual core inflation rate in Norway declined more than expected during October, according to Statistics Norway data issued on Tuesday, which eased pressure on the Norwegian Central Bank to raise interest rates.
The data showed that core inflation, which excludes changes in energy prices and taxes, fell to 2.7 percent on an annual basis in October, compared to 3 percent in September, and came below analysts’ expectations in a Reuters poll of 2.8 percent.
The Norwegian Central Bank had expected core inflation to reach 2.7 percent.
In the exchange markets, the Norwegian krone exchange rate fell to 10.55 against the euro by 07:03 GMT, compared to 10.54 before the data was released.
Last week, the Norwegian Central Bank left the key interest rate unchanged at 4.50 percent, while reiterating that it may have to tighten monetary policy again to contain consumer prices.
Central Bank Governor Ida Volden-Basch said at the time that it would likely be necessary to keep interest rates at high levels for some time, noting that the bank’s board of directors was prepared to raise them if necessary to return inflation to its target levels within a reasonable period of time.
The Norwegian Central Bank aims to keep core inflation at 2 percent, and is scheduled to announce its next decision on interest rates on December 17.
