- Decision
- Maintain
- Rate change
- 0 bps
- interest rate
- 5.75%
The Open Market Operations Committee of the Central Bank of Jordan held the central bank’s main interest rate at 5.75% at its fourth meeting of 2026 and left other monetary policy instrument rates unchanged, saying the decision reflected its assessment of domestic and international economic and monetary developments and was consistent with preserving monetary stability and aligning local rates with prevailing regional and global market rates. The central bank also pointed to the JOD 760 million package of pre-emptive measures taken in April as supporting the economy’s resilience. Domestic indicators remained supportive, with inflation at a moderate 1.88% in the first five months of 2026 and the Jordanian banking sector maintaining comfortable liquidity, profitability and capital adequacy levels. Monetary and external buffers were described as strong, with foreign currency reserves at USD 27.2 billion at end-May 2026, covering 9.5 months of goods and services imports, while remittances from Jordanians working abroad rose 13.3% in the first four months of the year. On the external side, national exports increased, but tourism income declined as it was affected by the repercussions of the war in Iran. The committee said it would continue to monitor regional and international economic and monetary developments closely and that the Central Bank of Jordan would take any measures needed to preserve monetary stability.
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.