CBJ ups interest rate by 25 basis points

AMMAN — The Central Bank of Jordan (CBJ) decided on Thursday to increase the interest rates on its various monetary policy instruments by 25 basis points, effective on Sunday, March 25, a CBJ statement said.

The CBJ, in the statement carried by the Jordan News Agency, Petra, decided to maintain the interest rate of the soft financing programme presented by CBJ to economic sectors unchanged at 1.75 per cent for projects inside the capital and at 1 per cent for schemes in other governorates.

The decision is made under the economic and monetary developments at the local, regional and international levels, and aims at enhancing the monetary and fiscal stability in the Kingdom.

It customarily followed a similar decision by the US Federal Reserve almost one day earlier.

It was also meant to promote the competitiveness of the Jordanian dinar denominated-assets through maintaining the local interest rate within levels that accord with regional and international rates, from one side, and to contain any possible inflation pressures in the future, from another, the statement said.

The CBJ added that the hike would not affect the refinancing rates applied on the CBJ’s refinancing programme, which targets priority and productive industries, including small and medium enterprises. 

The programme applies to the sectors of manufacturing, tourism, agriculture, renewable energy, engineering consultants and information technology.

The bank said that it would continue close follow-ups on local and international economic developments and take proper procedures that guarantee enhanced monetary and financial stability in the Kingdom.