Amman, Sept. 18 (Petra) – The Central Bank of Jordan (CBJ) cut its benchmark interest rate and all other monetary policy instruments by 25 basis points, effective Sept. 21, after inflation remained subdued and reserves stayed strong.
The bank’s Open Market Operations Committee said the move followed its assessment of economic and financial conditions at home and abroad. Inflation averaged 1.86% in the first eight months of 2025, with full-year levels expected to settle around 2.2%, helping preserve purchasing power and competitiveness.
Foreign reserves stood at $22.8 billion at the end of August, enough to cover 8.7 months of imports. The banking sector also showed resilience, with customer deposits rising 5.7% year-on-year to JD48.3 billion ($68 billion) by end-July and bank lending up 2.8% to JD35.6 billion. Capital adequacy in the first half of the year reached 18%, while the liquidity ratio was 142.4%, well above the 100% regulatory minimum.
External accounts remained robust. Tourism receipts climbed 7.5% in the first eight months to $5.3 billion, remittances edged 1.5% higher to $2.1 billion in the first seven months, and total exports grew 8.3% in the first half to $6.8 billion.
The central bank reaffirmed its commitment to monitoring global and domestic developments and to taking measures necessary to safeguard monetary and financial stability while supporting sustainable economic growth.
//Petra// AA
