CBJ lowers interest rate, prompted by positive monetary indicators

AMMAN — The Central Bank of Jordan (CBJ) on Thursday lowered for the third time this year the interest rate on all monetary policy instruments by 25 basis points, effective as of Thursday, October 31.

The bank said the decision was made in line with interest rate changes in international and regional markets, the Jordan News Agency, Petra, reported, citing a CBJ statement. 

The CBJ attributed the decision to the positive indicators experienced by national exports, tourism income and the continued flow of remittances, which have reflected positively on foreign currency reserves. 

The decision was also made in light of low inflation rates, in addition to growth in deposits and credit facilities in the private sector, the CBJ said, adding that the move also aims at enhancing the credit facilities granted to economic sectors as well as stimulating local spending.

In a customary decision, the bank said that it maintained the interest rate as is for entrepreneurs who borrow under a soft-financing programme that aims to boost the economy through financing SMEs in a set of designated sectors. 

The current interest rate level under the programme is 1.75 per cent for projects in Amman and 1 per cent for those started in governorates. 

The CBJ has financed some 1,125 projects with a total value of JD760 million under the soft-financing programme, to which a sum of JD1.2 billion is allocated. 

These schemes have contributed to providing more than 11,000 jobs across the Kingdom, according to the CBJ.

The CBJ said that it would continue to follow up closely on local and international economic developments and take proper procedures that guarantee enhanced monetary and financial stability in the Kingdom, according to the statement.