CBJ : Interest rate hikes to maintain monetary stability

The headquarters of the Central Bank of Jordan. (File photo: Ameer Khalifeh/Jordan News)
AMMAN — Central Bank of Jordan (CBJ) Governor Adel Sharkas has defended the bank’s recent decision to raise benchmark interest rates, asserting that the move aims to preserve monetary stability and restrain inflationary pressures, according to the Jordan News Agency, Petra.اضافة اعلان

In remarks during a panel discussion on Tuesday hosted by the Jordan Strategy Forum and titled, “Monetary Policy in Jordan in Light of the Current International Developments”, Sharkas anticipated the inflation rate to be around 3.8 percent for the entirety of 2022.

He emphasized that the rise in global prices, specifically the price of oil and basic foodstuff, is the main reason for the rise in the overall inflation rate and that inflation brought on by internal factors is not expected to rise above 2 percent until the end of the year.

Sharkas emphasized the Central Bank’s full commitment to maintaining the dinar’s fixed exchange rate against the dollar, noting that this policy has been serving the national economy well.

He said that the Central Bank and government’s efforts to get the economy back on track had paid off, citing a “beyond-expectations” boost in tourism income to JD1.2 billion in the first five months of 2022, with a growth rate of 269.6 percent.

At the same time, Sharkas was quoted by Al-Mamlaka TV as saying that the inflation rate is expected to reach between 4 percent and 5 percent during the second half of this year, and that “global oil and food prices have the biggest influence on local prices”.

CBJ has taken measures to reduce the impact of the decisions to raise interest rates on individuals and companies, and to enhance the economic activity in general, he said, adding that the CBA actions have contributed to ensuring a smooth transition to economic recovery after the pandemic.

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