Jordan's Central Bank Keeps Interest Rates Unchanged Supported by 2.7% GDP Growth in Q1 2025

SadaNews - The Open Market Operations Committee at the Central Bank of Jordan decided in its fifth meeting of this year to maintain the "central bank's key interest rate" and the other interest rates of monetary policy instruments at their current levels without change, according to a statement issued.

The committee stated that the decision came "after a comprehensive assessment of the economic, monetary, and financial developments locally, along with a review of the economic developments at the regional and international levels. The economic indicators showed the robustness of the national economy and its strength in facing the challenges posed by the ongoing geopolitical tensions in the region, as the Gross Domestic Product (GDP) recorded a growth of 2.7% during the first quarter of the current year, up by 0.5 percentage points from the same quarter last year, driven by growth in almost all economic sectors. The Central Bank's forecasts indicate a growth of 2.7% throughout the entire year of 2025, supported by improved domestic and external demand.

The indicators also confirm the strength of monetary stability in Jordan, supported by a comfortable level of foreign reserves at the Central Bank, which exceeded $22 billion by the end of June 2025, covering the Kingdom's imports of goods and services for 8.4 months.

The annual inflation rate remained at 2% during the first half of the current year, with expectations of stabilizing around 2.2% throughout the year 2025, contributing to maintaining purchasing power and enhancing the competitiveness of the national economy.

Similarly, the indicators of the banking sector continued to show robust performance, as the total customer deposits in banks increased by 7.1% year-on-year, reaching 48.2 billion dinars by the end of June 2025. Credit facilities granted by banks also recorded an annual growth rate of 3.9%, reaching approximately 35.5 billion dinars. The financial solvency indicators of the Jordanian banking sector show that the capital adequacy ratio stands at 18.0%, which is among the high ratios in the region, and legal liquidity is at 144.7%, exceeding the ratio imposed by the central bank, which is 100%.

The committee added: "External sector indicators continue to achieve positive results, with tourism income rising by 11.9% during the first half of the current year to reach $3.7 billion, compared to the same period last year. Total exports also recorded a high growth rate of 8.6% during the first five months of the current year, reaching a value of $5.6 billion."

The Central Bank of Jordan reaffirms its ongoing commitment to monitoring economic, monetary, and financial developments at both local and international levels, and to taking all necessary measures to maintain monetary and financial stability, ensuring moderate and stable levels of inflation, in line with the goals of sustainable economic growth in Jordan.