Banks begin raising interest rates on loans

(File photo: Ameer Khalifeh/ Jordan News)
AMMAN — A number of Jordanian banks have raised interest rates on residential and commercial loans as of Monday, according to Jfranews. The banks informed their customers of the decision via text message.اضافة اعلان

One bank reportedly raised its commercial interest rate from 8.95 percent to 9.5 percent, a decision that will increase both the monthly installments and the price of the loan overall.

Last month, the Central Bank of Jordan (CBJ) raised interest rates by 25 basis points on all monetary policy tools as of 20 March.

This decision comes within the framework of the CBJ’s continuous monitoring of interest rates and local, regional, and international economic developments, and aims to contain expected inflationary pressures in light of escalating inflation rates globally. The CBJ added that its decision is linked to curtailing inflation rates which are reaching high levels due to the gradual recovery of global demand in the wake of the COVID-19 pandemic and the accompanying imbalance in supply chains.

Residential loans granted to individuals accounted for 80 percent of the total real estate facilities at the end of 2020, which amounted to JD5.59 billion, while commercial real estate loans accounted for 20 percent of the total real estate facilities.

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