Ammon News - The Central Bank of Jordan’s Open Market Operations Committee opted to maintain its benchmark interest rates unchanged across all monetary policy instruments during its fourth policy meeting of the year, citing sustained macroeconomic stability and resilient financial sector performance.

The decision follows a comprehensive review of domestic monetary and banking conditions, regional and global economic trends, and prevailing geopolitical developments.

The committee reaffirmed the central bank’s commitment to a data-driven approach aimed at preserving price stability, safeguarding the soundness of the financial system, and supporting overall economic resilience.

Jordan’s key macroeconomic indicators continue to signal strength. As of the end of May, foreign currency reserves stood at $22.8 billion, adequate to cover 8.8 months of the Kingdom’s imports of goods and services, a level well above international adequacy thresholds.

Inflation remained moderate, averaging close to 2% during the first five months of 2025, consistent with the Central Bank’s inflation targeting objectives.

On the financial side, the banking sector displayed robust fundamentals. Total customer deposits rose 6.8% year-on-year, reaching JD 47.3 billion by the end of April. Credit extended by licensed banks expanded by 3.4% over the same period to JD 35.2 billion, indicating continued, albeit cautious, private sector credit demand.

The central bank highlighted the sector’s strong capital adequacy and the continued quality of loan portfolios as key buffers against potential economic shocks.

Jordan’s external sector also registered notable gains. Total exports grew by 11.6% in Q1 2025, reaching $3.3 billion, reflecting higher external demand and improved competitiveness.

Tourism receipts surged 15.7% year-on-year in the first five months to $3.1 billion, buoyed by increased regional stability and recovery in global travel. Meanwhile, remittance inflows from Jordanian expatriates rose 3% in the first four months, totaling $1.2 billion, supporting domestic consumption and external balances.