- Decision
- Maintain
- Rate change
- 0 bps
- interest rate
- 6.5%
The Central Bank of Jordan’s Open Market Operations Committee left interest rates on all monetary policy instruments unchanged at its first 2025 meeting, judging that low inflation and resilient economic indicators justify the pause. Annual inflation averaged 1.56 % in 2024, foreign reserves stand at USD 20.8 bn—enough to cover 8.1 months of imports—and deposits and credit grew 6.8 % and 4.2 % respectively to reach JOD 46.7 bn and JOD 34.8 bn, underscoring banking-sector strength. Real GDP expanded 2.4 % in the first quarters of 2024 and the central bank projects 2.5 % growth for the full year, while external accounts were buoyed by 2.8 % higher workers’ remittances (USD 3.6 bn), USD 7.2 bn in tourism receipts despite a 2.3 % dip, a 1.4 % narrower trade deficit on 5.2 % export growth, and JOD 906 m in foreign direct investment through Q3. Although the statement acknowledges regional instability, the authorities highlight continued resilience and reaffirm their readiness to adjust policy to safeguard monetary and financial stability and to advance financial inclusion, digital transformation and broader economic reforms.
Rate evolution
The Central Bank of Jordan held its policy rate steady through mid-2025, then cut it by a cumulative 75 basis points between September and December before pausing at 5.75% in January and March 2026. The early holds were framed around inflation near 2%, high foreign reserves, strong banking-sector liquidity and capital, and resilient growth, exports, tourism and remittances despite regional geopolitical tensions, while the December cut was presented as consistent with monetary stability, firmer reserves, low inflation at 1.8%, and solid banking and external-sector conditions.
In subsequent meetings, the Central Bank of Jordan kept the policy rate unchanged, citing stronger reserves, lower dollarization, moderate inflation and gradual growth improvement, while placing more emphasis on preserving the attractiveness of JOD-denominated assets and alignment with regional and global markets. By March it said uncertainty had intensified, though ample reserves and low inflation offered a buffer against external shocks and possible global price increases, and it signalled readiness to act promptly as data and international rates evolve. At its fourth and fifth meetings of 2026, it maintained the policy rate at 5.75% and other monetary policy instrument rates unchanged, citing monetary stability, the attractiveness of JOD-denominated assets and alignment with regional and international markets, alongside ample reserves, moderate inflation, comfortable banking-sector liquidity and capital adequacy, and gains in remittances and exports. At its sixth meeting, it raised rates on all monetary policy instruments by 25 basis points effective 21 September 2026 to preserve monetary stability, strengthen the attractiveness and competitiveness of JOD-denominated assets and align local rates with regional and international market trends, after reviewing monetary policy stances at central banks and measures addressing rising inflationary pressures, while noting inflation of 2.20% in the first eight months, tourism income growth of 2.9% to about USD 5.6 billion over the same period, and increases of 14.1% in remittances to about USD 3.0 billion and 7.2% in national exports to USD 6.6 billion in the first seven months.