Central Bank Decides to Hold Interest Rates Steady

Central Bank Decides to Hold Interest Rates Steady
Central Bank Decides to Hold Interest Rates Steady
The Open Market Operations Committee at the Central Bank of Jordan held its first meeting of 2026 and decided to maintain the Central Bank’s key policy rate, along with all other interest rates on monetary policy instruments, at their current levels without change. The decision comes in support of monetary stability in the Kingdom and to ensure consistency between the domestic interest rate structure and those prevailing in regional and international financial markets.اضافة اعلان

The Central Bank’s foreign reserves rose to more than $26 billion by the end of January 2026, covering the Kingdom’s imports of goods and services for nine months. The deposit dollarization rate also declined to 18% by the end of November 2025, reflecting the strength of monetary and banking stability in the Kingdom, as well as confidence in and the attractiveness of the national currency. Inflation averaged around 1.77% during 2025, an appropriate level that helps preserve the competitiveness of the national economy and the purchasing power of the Jordanian dinar.

Banking indicators continued to demonstrate strong performance, with total bank deposits increasing by 7.2% year-on-year to reach JOD 49.8 billion by the end of November 2025. Outstanding credit facilities extended by banks rose by 3.3% to JOD 36.2 billion. Banks also maintained high levels of liquidity, capital adequacy, and return on capital, reflecting the resilience of the Jordanian banking sector, its prudent risk management, and its capacity to continue financing economic activity at moderate interest rates.

According to the latest available economic data, external sector indicators recorded positive performance in line with the Central Bank’s expectations. Tourism income increased by 7.6% during 2025 to reach $7.8 billion. Remittances from Jordanians working abroad rose by 4.6% during the first eleven months of 2025 to $4.1 billion. Total exports grew by 7.7% during the first ten months of 2025 to reach $12.1 billion. Net inflows of foreign direct investment into the Kingdom increased by 27.7% during the first three quarters of 2025 compared with the same period in 2024, reaching $1.5 billion.

In light of these developments, the national economy continued to achieve gradual improvement across most economic sectors in 2025, resulting in an increase in economic growth to 2.75% during the first three quarters of 2025, compared with 2.56% in the same period of 2024. Economic growth for the full year of 2025 is expected to be no less than 2.7%.

The Central Bank of Jordan reaffirmed its commitment to closely monitoring economic, financial, and monetary developments at the local, regional, and international levels, and to taking appropriate measures based on economic data and indicators, as well as global interest rate developments, in order to preserve the attractiveness of assets denominated in the Jordanian dinar and to enhance monetary and financial stability.

Al Mamlaka