Amman: The Central Bank of Jordan (CBJ) cut its benchmark interest rate and all other monetary policy instruments by 25 basis points, effective Sept. 21, after inflation remained subdued and reserves stayed strong.
According to Jordan News Agency, the bank’s Open Market Operations Committee stated that the decision was made after assessing economic and financial conditions both domestically and internationally. Inflation in Jordan averaged 1.86% during the first eight months of 2025, with expectations for the full year to settle around 2.2%. This level of inflation helps maintain the purchasing power of the Jordanian dinar and the competitiveness of the economy.
The foreign reserves of Jordan were reported to be at $22.8 billion as of the end of August, which is sufficient to cover 8.7 months of imports. The banking sector showed resilience with customer deposits experiencing a 5.7% increase year-on-year, amounting to JD48.3 billion ($68 billion) by the end of July. Bank lending also rose by 2.8% to JD35.6 billion. The capital adequacy ratio was at 18% in the first half of the year, and the liquidity ratio stood at 142.4%, which is significantly higher than the 100% regulatory minimum.
The central bank noted that external accounts remained strong, with tourism receipts increasing by 7.5% in the first eight months to $5.3 billion. Additionally, remittances rose by 1.5% to $2.1 billion in the first seven months, and total exports grew by 8.3% in the first half of the year to $6.8 billion.
The CBJ reiterated its commitment to closely monitoring both global and domestic economic developments. The bank emphasized its readiness to implement necessary measures to ensure monetary and financial stability while promoting sustainable economic growth.