Central Bank leaves interest rate unchanged

Economy

Published: 2023-12-14 15:20

Last Updated: 2024-02-25 08:58


Central Bank leaves interest rate unchanged
Central Bank leaves interest rate unchanged

The Open Market Operations Committee at the Central Bank of Jordan, in its eighth and final meeting of 2023, decided to keep the interest rates of monetary policy tools unchanged.

The committee affirmed the continued close monitoring by the central bank of the performance of the national economy, as well as the regional and international economic and geopolitical developments in the region.

The committee extensively discussed the indicators of the national economy's performance based on the latest available economic data for the year 2023. Key points included foreign reserves of the central bank, reaching $17.2 billion, sufficient to cover the Kingdom's imports of goods and services for 7.6 months.

Bank deposits also witnessed a year-on-year increase of 1.4 billion dinars at the end of October 2023, with a growth rate of 3.3 percent, totaling 43.3 billion dinars. Credit facilities in Jordanian dinars provided by banks increased by about 1.3 billion dinars on a yearly basis, with a growth rate of 4.6 percent.

The committee expressed confidence in the stability and soundness of the Jordanian banking system, as per the latest indicators of financial safety.

Additionally, the committee reviewed the developments of external sector indicators in the Kingdom. Tourism income increased by 30.5 percent during the first eleven months of 2023. National merchandise exports reached 6.3 billion dinars in the first three quarters of the current year, while remittances from Jordanians working abroad increased by 1.1 percent to reach 2.0 billion dinars during the first ten months of 2023. Concurrently, foreign direct investment inflows to the Kingdom rose by 20.9 percent during the first half of 2023, reaching 776 million dollars.

Jordan’s economy exceeded expectations, registering a growth rate of 2.7 percent during the first half of the current year, accompanied by a decrease in the inflation rate to 2.1 percent during the first eleven months of 2023.