Central Bank of Jordan Holds Main Interest Rate at 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.