The Open Market Operations Committee of the Central Bank of Jordan (CBJ) raised the interest rates on its various monetary policy instruments by 25 basis points on Thursday, Petra news agency reported. The decision takes effect on Sunday, March 25, 2018.

In a statement released by the CBJ, the decision to raise interest rate took into consideration all regional and global developments as well as monetary developments. It will maintain monetary and financial stability in the kingdom.

According to the statement, the raise will promote the competitiveness of the Jordanian dinar against other currencies by maintaining the local interest rate within the levels of global and regional interest rates.

The CBJ confirmed that refinancing rates applied to the CBJ’s refinancing programme will not be affected by the raise, as it targets priority and productive industries including small and medium-sized enterprises (SMEs).

Additionally, concessional financing rates will be kept unchanged at 1.75 percent for projects located in the capital city Amman and 1 percent for projects located in other governorates.

The previous increase in interest rate in Jordan took place in December 2017, when the CBJ decided to raise it by 25 basis points.