Jordan's Central Bank Open Market Operations Committee Decides to Cut the Main Interest Rate by 25 Basis Points

SadaNews Economy - The Open Market Operations Committee at the Central Bank of Jordan held its eighth and final meeting of the year, deciding to cut the "main interest rate" and interest rates on various monetary policy tools by 25 basis points, effective Sunday, December 14, 2025.

The committee confirmed the robustness of monetary stability in the Kingdom, supported by a notable increase in the Central Bank's foreign currency reserves, which reached $24.6 billion by the end of November 2025, covering the Kingdom's imports of goods and services for 8.8 months. Additionally, the inflation rate remained low at 1.8% during the first eleven months of 2025.

Regarding the banking sector's performance, total deposits at banks increased by 7.3% year-on-year, reaching 49.3 billion dinars by the end of October 2025. Credit facilities extended by banks also recorded a growth of 3.9%, totaling 36.1 billion dinars. Banks continued to maintain robust financial positions and high liquidity levels, strengthening the resilience of the Jordanian banking sector against shocks.

On the economic indicators front, the national economy continued to show positive performance throughout 2025; tourism revenues increased by 6.5% in the first ten months, reaching $6.6 billion. Transfers from Jordanian workers abroad rose by 4.1% during the first three quarters, totaling $3.3 billion. Total exports also showed significant growth of 8.8% during the same period, reaching $10.8 billion.

Moreover, net foreign direct investment inflows surged by 36.4% during the first half of 2025 compared to the same period in 2024, totaling $1.0 billion. In terms of economic growth, the economy recorded a growth rate of 2.8% during the second quarter of 2025, following a rate of 2.7% in the first quarter.

The Central Bank of Jordan reaffirms its commitment to monitor economic, financial, and monetary developments at local, regional, and international levels, undertaking necessary measures to ensure the maintenance of monetary stability, thereby fostering a stable economic environment that supports sustainable economic growth.