- Decision
- Maintain
- Rate change
- 0 bps
- interest rate
- 6.5%
The Central Bank of Jordan’s Open Market Operations Committee kept interest rates on all monetary policy instruments steady at its third 2025 meeting, judging that low and stable inflation, ample foreign reserves, and resilient real-sector data justify no change. Rates have remained on hold since at least January 2025. End-April foreign reserves reached a record USD 22.8 bn, covering 8.8 months of imports, while inflation held at 2 % in Q1 and is forecast to average 2.2 % for 2025. Bank deposits rose 6.8 % year-on-year to JD 47.4 bn and credit expanded 3.9 % to JD 35.2 bn by end-March, underpinning GDP growth of 2.5 % in 2024 and an expected 2.7 % in 2025. Tourism receipts climbed 8.9 % to USD 1.7 bn in Q1, with workers’ remittances and exports also strengthening. The central bank reiterated its readiness to act as needed to preserve monetary and financial stability and keep inflation within acceptable bounds.
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.