Jordan’s Central Bank decreases interest rates by 25 basis points

[8/1/2019 9:28:38 AM]

AMMONNEWS - The Central Bank of Jordan (CBJ) has decided to decrease the interest rates on its various monetary policy instruments by 25 basis points as of Sunday, August 4, 2019.

In a statement released by the CBJ on Thursday, the decision to decrease interest rate took into consideration all regional and global monetary developments, and aims to stimulate domestic consumer, investment spending, which will have a "positive" impact on economic growth rates.

The CBJ's decision comes in light of the low inflation rate, which is expected to remain so during 2019, in addition to the "noticeable" improvement in the balance of payments, the low trade balance deficit, and the positive developments in the monetary indicators, including high deposit rate and facilities in the private sector, and the "comfortable range" of the bank's foreign reserves.

The CBJ's Open Market Operations Committee decided to keep concessional financing rates unchanged at 1.7 % for projects located in the capital city Amman and 1 % for projects located in other governorates.

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