AMMAN — The Association of Banks in Jordan (ABJ) discussed on Thursday the decision of the Central Bank of Jordan (CBJ) to lower interest rates.

 

ABJ Secretary-General Maher Mahrouq stressed that the decision reflects the CBJ's approach to monitoring economic, monetary and financial developments both locally and globally, while taking the necessary measures to safeguard Jordan’s monetary and financial stability.

 

Mahrouq told Al Mamlaka TV that the effects of the decision will "gradually" be reflected in loans for individuals and companies, in line with the interest adjustment schedule specified in contracts with banks, whether annual, semi-annual or quarterly.

 

He added that interest rates are automatically revised when the contract’s scheduled adjustment date arrives.

 

Mahrouq also predicted that interest rates are likely to decline in the coming period, in line with current monetary policy trends.

 

The Open Market Operations Committee of the CBJ, in its sixth meeting of the year, approved a 25-basis point reduction in the central bank’s key interest rate and other monetary policy instrument rates, effective on Sunday.

 

The decision comes in light of the committee’s assessment of recent economic, monetary, and financial developments, as well as its monitoring of regional and global interest rate trends.

 

Inflation reached 1.86 per cent during the first eight months of the year, with expectations that it will stabilise around 2.2 per cent for 2025, supporting the preservation of purchasing power and boosting the competitiveness of the national economy.

 

Indicators also point to “strong” monetary stability in the Kingdom, underpinned by “robust” foreign reserves at the CBJ, which stood at some $22.8 billion at the end of August, enough to cover the country’s imports of goods and services for 8.7 months.