The Central Bank of Jordan Keeps Interest Rates Unchanged

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The Central Bank of Jordan Keeps Interest Rates Unchanged
Amman – The Open Market Operations Committee at the Central Bank of Jordan decided during its first meeting of the year to keep the interest rates on monetary policy instruments unchanged.اضافة اعلان

This decision was made after a comprehensive evaluation of the latest economic, banking, and monetary developments in the Kingdom, as well as regional and global economic changes.

The economic indicators reflect the strength and sound performance of the Jordanian banking sector, reinforcing the foundations of monetary stability, supported by a high level of foreign reserves at the Central Bank, which currently stands at $20.8 billion.

This is sufficient to cover the Kingdom's imports of goods and services for 8.1 months.

Inflation in the past year was recorded at 1.56%, reflecting a stable monetary environment that supports overall economic stability.

Banking indicators continued to perform strongly, with deposits at banks increasing by JD 3 billion during the past year, marking a notable growth of 6.8% compared to 2023, bringing total deposits in banks to JD 46.7 billion.

Credit facilities granted by banks also rose by JD 1.4 billion, a growth of 4.2%, bringing the total credit facilities to JD 34.8 billion, confirming the important role of the banking sector in financing economic and investment activities in the Kingdom.

Despite the unstable regional conditions, external sector indicators showed positive and resilient performance. Remittances from workers abroad increased by 2.8% last year, reaching $3.6 billion, while tourism income totaled $7.2 billion, despite a 2.3% decline compared to 2023.

The trade deficit also decreased by 1.4% during the first eleven months of the year, driven by a 5.2% increase in total exports during the same period.

Foreign direct investment in the Kingdom for the first three quarters of the previous year reached about JD 906 million.

The national economy achieved real growth of 2.4% during the same period last year, and it is expected to rise to 2.5% for the full year of 2024, according to Central Bank estimates.

This performance reflects the ongoing recovery of the Jordanian economy, supported by sound monetary, economic policies, and government measures, along with a firm commitment to implementing structural reforms that enhance productivity, competitiveness, and the attractiveness of the national economy for investment.

The Central Bank reaffirms its commitment to monitoring local, regional, and international economic, financial, and monetary developments, and will take appropriate measures to ensure monetary and financial stability in the Kingdom.

It will continue its efforts to create an economic environment that supports sustainable financing, financial inclusion, digital transformation, and innovation, contributing to achieving the Kingdom’s development goals and the targets of the Economic Modernization Vision.