Amman, Dec. 11 (Petra) -- The Central Bank of Jordan (CBJ) has moved to ease monetary policy, announcing a 25–basis point reduction to its main interest rate and corresponding policy instruments, effective Sunday.
The decision came during the eighth and final meeting this year of the Open Market Operations Committee, which cited strong monetary fundamentals and improving macroeconomic indicators as key enablers for the cut.
According to the committee, Jordan’s monetary stability remains firmly supported by the Central Bank’s robust foreign reserves, which climbed to $24.6 billion at the end of November, sufficient to cover 8.8 months of the Kingdom’s imports, a level considered well above global adequacy benchmarks. Inflation remained subdued at 1.8% during the first eleven months of 2024, providing additional room for accommodative policy.
Banking sector indicators also reflected resilience. Total deposits expanded 7.3% year-on-year to JD49.3 billion by the end of October, while bank credit facilities rose 3.9% to JD36.1 billion. The sector continues to maintain comfortable liquidity buffers and strong capitalization, reinforcing its ability to absorb external and domestic shocks.
Economic performance across key sectors strengthened throughout the year. Tourism revenues increased 6.5% in the first ten months to $6.6 billion, while remittances from Jordanians abroad grew 4.1%, reaching $3.3 billion. Total exports rose 8.8% to $10.8 billion, reflecting improved external demand and competitiveness. Foreign direct investment surged 36.4% in the first half of the year, totaling $1.0 billion, marking one of the highest annual gains in a decade.
Economic growth stayed on a steady trajectory, with GDP expanding 2.8% in the second quarter after achieving 2.7% in the first, consistent with medium-term growth expectations.
The Central Bank emphasized that it will continue to monitor domestic and global economic conditions and stands ready to adjust policy tools as needed to preserve monetary and financial stability. It reaffirmed its commitment to maintaining a stable macroeconomic environment conducive to sustainable economic growth.
//Petra// RZ
