CBJ lowers interest rates on various instruments

AMMAN – The Central Bank of Jordan (CBJ) on Monday decided to cut interest rates on key monetary policy instruments effective as of Tuesday. 

According to a statement carried by the Jordan News Agency, Petra, CBJ Governor Ziad Fariz said the interest rate on overnight deposit window facility will be decreased from 2.75 per cent to 1.75 per cent, the rediscount rate by 25 basis points to 4 per cent from 4.25 per cent, overnight repurchase agreements from 4 per cent to 3.75 per cent and the interest rate on weekly/other repurchase agreements will be decreased by 25 basis points to 2.75 per cent from 3 per cent. 

Fariz said that a CBJ main rate will be adopted as a reference for the banking system in order to boost banks' abilities to manage their liquidity efficiently and meet the increasing financing needs of all economic sectors. 

Meanwhile on Monday, CBJ announced the volume of required reserves stood at JD 1.470 billion, while that of excess liquidity, including overnight window deposits, held at JD3.497 billion. The value of overnight repurchase agreements (REPO) held with the bank was JD18 million on February 1, the CBJ said on its website.