CBJ lowers interest rate for second time in less than 2 months

AMMAN — The Central Bank of Jordan (CBJ) on Thursday decided to lower the interest rate on all monetary policy instruments by 25 basis points, effective as of Thursday, September 19.

The bank said the decision was taken in line with interest rate changes in international and regional markets, the Jordan News Agency, Petra, reported, citing a CBJ statement. 

The move also aims at enhancing the credit facilities granted to economic sectors as well as stimulating local spending, according to the statement.

The decision was also made in light of a low inflation rate and an outlook predicting the same along with the CBJ’s relatively high level of foreign currency reserve, according to the statement.

However, the CBJ, in a customary decision, decided to maintain interest rate as is for entrepreneurs who borrow under a soft-financing programme that aims to boost the economy through financing SMEs in a set of designated sectors. 

The current interest rate level under the programme is 1.75 per cent for projects in Amman and 1 per cent for those started in governorates. 

The CBJ has financed some 1,109 projects with a total value of JD738 million under the soft-financing programme, to which a sum of JD1.2 billion is allocated. 

These schemes have contributed to providing more than 11,000 jobs across the Kingdom, according to the CBJ.

The CBJ said that it would continue to follow up closely on local and international economic developments and take proper procedures that guarantee enhanced monetary and financial stability in the Kingdom, according to the statement.