Press Release
The Open Market Operations Committee decides to cut interest rates on the monetary policy instruments by 25 basis points
The Open Market Operations Committee at the Central Bank of Jordan (CBJ) held its eighth and final meeting this year, where it decided to reduce interest rates on all monetary policy instruments by 25 basis points as of Sunday, December 22, 2024. The Committee emphasized the soundness of the monetary indicators and the strength of the Jordanian dinar, supported by the rise of foreign reserves at the CBJ, which currently stands at $21.1 billion and is sufficient to cover 8.4 months of the Kingdom’s imports of goods and services, in addition to the stability of the inflation rate at 1.5% during the first eleven months of 2024. Deposits with banks increased by around JD 2.7 billion at the end of October 2024, with a growth rate of 6.1 percent on an annual basis, to reach JD 46.0 billion, while credit facilities extended by banks increased by around JD 1.4 billion, with a growth rate of 4.4 percent on an annual basis, to reach JD 34.8 billion. The latest financial soundness indicators, as they were at the end of the first half of 2024, confirm the safety and soundness of the Jordanian banking sector.
According to the most recent economic data, workers' remittances increased during the first ten months of 2024 by 3.1 percent to reach USD 3.0 billion. Tourism income achieved around USD 6.7 billion during the first eleven months of 2024, with a decrease of 3.7 percent compared to the same period last year. CBJ’s estimates also showed an improvement in the trade balance, as the deficit therein decreased by 5.3 percent during the first ten months of the current year due to the significant increase in the Kingdom’s exports during the aforementioned period. Furthermore, the CBJ expects that the national economy will grow by 2.4 percent in 2024, after recording 2.2% in the first half of the current year.
The CBJ affirms its continued commitment to monitoring economic, financial and monetary developments locally, regionally and globally, and taking appropriate measures to ensure maintaining the monetary and financial stability in the Kingdom; being as the key pillar for creating an economic environment that contributes to enhancing the sustainable growth.
The Central Bank of Jorda