At its sixth meeting of this year, the Open Market Operations Committee in the Central Bank of Jordan has decided to reduce the “Key Interest Rate” of the Central Bank as well as all monetary policy instruments rates by 25 basis points as of Sunday, September 21st of 2025.
The decision herein was taken due to the Committee’s evaluation of economic, monetary and financial developments and examination of the interest rates trends on the regional and global levels, whereas the inflation rate reached 1.86% during the first eight months of the current year which is expected to stabilize around 2.2% for the entirety of 2025, contributing to maintaining purchase power and strengthening of the competitiveness of the national economy. Indicators also manifest the strength of the monetary stability in the Kingdom, sustained by high levels of foreign reserves at the Central Bank that reached 22.8 billion USD as of the end of August 2025, and are sufficient to cover 8.7 months of the Kingdom’s services and goods imports.
Similarly, banking sector indicators continue to show a robust performance, whereas total deposits at banks rose by a growth rate of 5.7% on an annual basis, reaching 48.3 billion Dinar by the end of July 2025. On the other hand, credit facilities granted by banks rose by 2.8% on an annual basis, reaching 35.6 billion Dinar. The financial soundness indicators also show solid solvency of the Jordanian banking sector whereas preliminary data for the first half of this year show that the capital adequacy ratio, which measures ability of banks to cover risks and meet their financial liabilities, has reached 18%, which is among the highest in the region, while legal liquidity reached a rate of 142.4 %, exceeding the minimum required legal liquidity ratio of 100% as set by the Central Bank.
The external sector continues to show high resilience, whereas tourism income rose by 7.5% during the first eight months of this year reaching 5.3 billion USD in comparison with the same period of last year. Furthermore, the workers’ remittances rose by 1.5% to reach 2.1 billion USD during the first seven months of this year. Meanwhile, total exports recorded a growth of 8.3% during the first half of this year, reaching 6.8 billion USD.
The Central Bank of Jordan reiterates its unrelenting commitment to monitoring all economic, financial and monetary developments on the domestic and global levels, while taking all needed measures to maintain the monetary and financial stability of the Kingdom, ensuring stable and moderate inflation levels while serving the targets of sustainable economic growth in the Kingdom.
