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CBJ raises monetary policy rates by 75 basis points

CBJ
(File Photo: Jordan News)
AMMAN — The Central Bank of Jordan (CBJ) on Thursday raised all its benchmark monetary policy rates by 75 basis points, effective November 6, 2022, according to Jordan News Agency, Petra.    اضافة اعلان

In a statement, the bank's Open Operations Market Committee said that the decision is in line with the bank's mission to preserve the Kingdom's monetary stability and the Jordanian dinar's appeal as a savings instrument in the face of rising interest rates in regional and international markets and in light of high global inflation rates.

According to official statistics, inflation rate went up from 2.5 percent in January of 2022 to 5.4 percent in September of the same year, bringing the average inflation rate to 4 percent during the first three quarters of the current year.

The committee said it kept interest rates on a JD1.3 billion CBJ-sponsored refinancing program unchanged in order to strike a balance between the goals of safeguarding monetary stability and spurring economic growth and mitigating the impact of higher interest rates, it added.

The tranche, launched in the aftermath of the Covid-19 pandemic, targets ten critical sectors of the economy, providing a lending window at 1-percent interest rate for Amman-based businesses and 0.5 percent for non-Amman-based enterprises.

The committee also decided to extend the CBJ's JD700 million program to help small and medium enterprises, professionals, craftspeople, and importers in the wholesale sector of basic commodities until the end of the current fiscal year, while keeping the interest rate at 2 percent until the program wraps up.

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