CBJ raises monetary policy rates by 25 basis points

Central Bank of Jordan CBJ
(File photo: Jordan News)
AMMAN — The Central Bank of Jordan (CBJ) on Thursday raised all its benchmark monetary policy rates by 25 basis points, effective as of March 26, the Jordan News Agency, Petra, reported.اضافة اعلان

The bank's Open Operations Market Committee held a meeting to discuss the performance of the national economy, the latest monetary and banking developments in the Kingdom, and their repercussions on the expected performance for the current year, in addition to global economic developments, the performance of financial markets, and interest rate trends.

To preserve the Kingdom's monetary stability and the Jordanian dinar's appeal as a savings instrument, the committee decided to keep interest rates unchanged on a JD1.4 billion CBJ-sponsored refinancing program, which targets 10 sectors. The rates for this program stand at 1.0 percent for Amman-based businesses and 0.5 percent for borrowers in the rest of the Kingdom. The bank also extended the program until the end of March 2024 due to its importance in supporting the gradual recovery of the Jordanian economy, creating more job opportunities, and ensuring funding for the targeted economic sectors on soft lending terms.

The committee also decided to keep interest rates for another JD700-million credit line targeting small and medium companies, professionals, and craftsmen at less than 2 percent, and for a period of 54 months, including a grace period of up to 12 months.

The decisions also aim to restrain inflationary pressures in light of the rising inflation rate in the Kingdom in 2022, which has reached 4.2 percent after standing at 4 percent in January and February.

The committee stressed the solid performance of all monetary, banking, and economic indicators in the Kingdom, according to the latest available indicators, most importantly data on the foreign reserves of the Central Bank of Jordan, which have maintained their high level of $16.7 billion and are sufficient to cover the Kingdom's imports of goods and services for a period of 7.3 months.

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