CBJ lowers interest rates on monetary policy instruments by 25 basis points

AMMAN — The Central Bank of Jordan (CBJ) on Thursday decided to lower interest rates on all monetary policy instruments by 25 basis points, effective on Sunday.

The decision was made during the eighth and final meeting of CBJ's Open Market Operations Committee in 2024, the Jordan News Agency, Petra, reported.

The committee stressed the resilience of monetary indicators and the strength of the Jordanian dinar, which is supported by the CBJ's high foreign reserves, currently amounting to $21.1 billion, sufficient to cover the kingdom's imports of goods and services for 8.4 months. 

The inflation rate also remained stable at 1.5 per cent during the first 11 months of this year.

Bank deposits saw an increase of JD2.7 billion by the end of October, reflecting a 6.1 per cent annual growth, bringing total deposits to JD46 billion. 

Credit facilities provided by banks grew by JD1.4 billion, a 4.4 per cent annual increase, raising total facilities to JD34.8 billion. 

According to the latest economic data, expatriates' remittances grew by 3.1 per cent in the first 10 months of the year, reaching $3 billion. 

Tourism revenues amounted to $6.7 billion in the first 11 months, marking a slight decline of 3.1 per cent compared to the same period last year.

Estimates by the CBJ also showed an improvement in the trade balance, with the deficit shrinking by 5.3 per cent during the first 10 months of the year due to a significant rise in the Kingdom's exports during this period. 

The CBJ also forecast that the national economy will grow by 2.4 per cent this year, following a 2.2 per cent growth rate in the first half of the year.

The CBJ also said it would continue monitoring economic, financial, and monetary developments locally, regionally and globally and will take necessary measures to ensure the stability of monetary and financial conditions in the Kingdom, which are essential for fostering a sustainable growth environment.