- Decision
- Maintain
- Rate change
- 0 bps
- interest rate
- 999%
The Central Bank of Jordan’s Open Market Operations Committee held interest rates on all monetary policy instruments unchanged, seeking to preserve monetary stability and the attractiveness of the Jordanian dinar and dinar-denominated assets amid moderate inflation and stronger-than-expected growth. This followed cuts in October and December 2025, a key-rate hold at 5.75% in July 2026 and a 25-basis-point increase in September. Inflation averaged 2.26% in the first nine months of 2026, while real gross domestic product grew 3.0% in the second quarter, exceeding expectations. The banking sector remained resilient and able to support economic activity. Foreign reserves stood at about USD 28.5 billion at end-September 2026, covering more than nine months of goods and services imports. The central bank said it would continue monitoring domestic and external developments and take necessary measures to preserve monetary and financial stability and strengthen economic resilience.
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.
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 evolved. 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, the Central Bank of Jordan 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 central banks’ monetary policy stances and measures addressing rising inflationary pressures. At its seventh meeting of 2026, it held rates on all monetary policy instruments unchanged to preserve monetary stability and enhance the attractiveness of JOD and JOD-denominated assets, noting foreign reserves of about USD 28.5 billion at end-September 2026, sufficient to cover more than nine months of goods and services imports, inflation of 2.26% over the first nine months, stronger-than-expected real gross domestic product growth of 3.0% in the second quarter, and gains in tourism income, remittances and total exports.