- 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 second 2025 meeting, pointing to firm monetary stability, a robust banking sector and low inflation, which averaged 2.2 % in January–February and is expected to remain at that level for 2025. After similarly holding rates steady in January, the stance keeps policy settings unchanged so far this year. The bank highlighted foreign reserves above USD 21 billion at end-February, while tourism receipts rose 16.3 % to about USD 1.3 billion in the first two months of 2025 and workers’ remittances increased 1.2 % in January. Real GDP expanded 2.4 % in the first three quarters of 2024 and is projected to edge up to 2.7 % in 2025; bank deposits grew 6.8 % year-on-year to JD 47 billion and credit facilities rose 4.8 % to JD 35.1 billion by January, underscoring solid financial intermediation. The central bank pledged to keep closely monitoring domestic and global developments and to act as needed to safeguard monetary and financial stability and contain inflation.
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.