CBJ raises interest rate by 50 basis points

CBJ raises interest rate by 50 basis points

AMMAN — The Central Bank of Jordan (CBJ) on Sunday decided to increase the interest rate of its various monetary policy instruments by 50 basis points, effective this Monday, December 19.

To guarantee the availability of appropriate financing for vital sectors in the economy, the CBJ’s open market operations committee decided to continue refinancing JD1.3 billion in programme interest rates, which remain unchanged at 1 per cent for projects based in Amman and 0.5 per cent for projects located in other governorates.

The interest rate will remain stable within the 10-year loan term for all projects, the Jordan News Agency, Petra, reported.

The CBJ’s refinancing programme of vital economic sectors currently serves 10 sectors.

The committee also decided to extend the CBJ's programme at a cost of JD700 million to support SMEs, professionals, craftspeople and basic commodity importers for another two months, until the end of February 2023, Petra reported.

The committee also decided to stabilise interest rate with CBJ's programme at a rate no more than 2 per cent.

The CBJ’s open market operations committee decision was taken in line with interest rate changes in the regional and international monetary markets. The changes are intended to address the pressures of inflation amid rising global inflation