US rates and Gulf credit, Oman tightens fiscal policy

Central banks in the Gulf will follow the US Federal Reserve in cutting interest rates next week, but past experience suggests that this is unlikely to provide a significant boost to the economy. Meanwhile, Oman released long-overdue budget figures this week which revealed a marked tightening of fiscal policy since mid-2018, supporting our view that growth will be weaker than most expect in 2019-21.