Oman c.bank head says easy policy in line with econ developments

DOHA, Sept 18 (Reuters) - Oman's central bank monetary policy settings are in line with current economic developments, Central Bank Executive President Hamood Sangour al-Zadjali said on Tuesday.

Asked if he thought that monetary policy was in line with economic fundamentals, he told reporters: "Yes, very much so. We try to maintain an easy monetary policy to help the development of the economy."

Oman lacks a fully independent monetary policy because its rial currency is pegged to the U.S. dollar. Its central bank has been keeping a loose policy stance since early 2009 as inflation slowed sharply from double-digit rates seen in 2008.

In July, the central bank said there was scope to pursue accommodative monetary and fiscal policies in the rest of 2012 without jeopardising macroeconomic stability of Oman.

The interest rate which it uses to drain excess liquidity from the market stood at 0.07 percent at its weekly auction of deposit certificates on September 12.