Ammon News - The Open Market Operations Committee of the Central Bank of Jordan (CBJ), in its fifth meeting of the year, decided to maintain the CBJ’s key interest rate and all other monetary policy instrument rates at their current levels.

The decision followed a comprehensive review of domestic economic, monetary, and financial indicators, as well as regional and international economic developments. The CBJ cited the strength and resilience of the national economy despite regional geopolitical tensions. Gross Domestic Product (GDP) grew by 2.7 percent in the first quarter of 2025, an increase of 0.5 percentage points compared to the same period last year, driven by growth across most economic sectors. The Bank projects an annual GDP growth of 2.7 percent, supported by improved domestic and external demand.

Monetary stability remains robust, supported by a strong foreign reserves position, which exceeded $22 billion at the end of June, sufficient to cover 8.4 months of the Kingdom’s imports of goods and services. The inflation rate remained contained at 2 percent during the first half of the year, with forecasts placing it at around 2.2 percent for the full year, helping preserve purchasing power and strengthen economic competitiveness.

Banking sector performance continued to be strong, with total customer deposits increasing by 7.1 percent year-on-year to JOD 48.2 billion by the end of June. Credit facilities extended by banks rose by 3.9 percent year-on-year, totaling approximately JOD 35.5 billion.

Financial soundness indicators highlight the resilience of the Jordanian banking system. The capital adequacy ratio stands at 18.0 percent, among the highest in the region, while the legal liquidity ratio reached 144.7 percent, significantly above the CBJ’s minimum requirement of 100 percent.

External sector performance remained positive. Tourism revenues surged by 11.9 percent in the first half of the year to $3.7 billion, while exports rose by 8.6 percent in the first five months, totaling $5.6 billion.

The Central Bank reaffirmed its commitment to closely monitoring economic and financial conditions locally and globally and pledged to take all necessary measures to safeguard monetary and financial stability, maintain moderate inflation levels, and support sustainable economic growth in the Kingdom. Petra