Central Bank Keeps Interest Rates On Monetary Policy Instruments Unchanged

Amman: The Open Market Operations Committee of the Central Bank of Jordan, in its second meeting of the year, opted to maintain the current level of interest rates on monetary policy instruments without alterations. The gathering held on Thursday delved into economic and monetary advancements within the Kingdom, showcasing the resilience of the national economy and its capacity to sustain positive momentum, despite regional conditions. Currently, the Central Bank's foreign reserves stand at $18.2 billion, sufficient to cover the country's imports for 7.9 months. Bank deposits surged by approximately JD2 billion by the end of January 2024, marking a 4.6 percent annual growth to hit JD44 billion. Concurrently, credit facilities in dinars extended by banks witnessed a 2.5 percent annual increase, amounting to about JD727.4 million. End-of-2023 financial strength indicators confirm the robustness and endurance of Jordan's banking system. The cohesive economic strategies implemented by the government and the Ce ntral Bank effectively curbed inflationary pressures, with the inflation rate dropping to 2.1 percent in 2023 from 4.2 percent in 2022. This downtrend persisted in the first two months of the current year, recording 1.8 percent. Projections from the Central Bank suggest that the national economy will achieve a real economic growth rate of no less than 2.6 percent in 2023, marking a 0.2 percentage point increase from the previous year. Preliminary data highlight a significant reduction in the current account deficit in the balance of payments, decreasing to about 3.7 percent of GDP in 2023 from 7.8 percent in 2022. This shift is attributed to an 11 percent decline in the trade balance deficit and a 62.8 percent surge in the services account surplus, driven by a 27.4 percent rise in tourism income in 2023. Early indications for 2024 depict promising results for tourism income, with a 4.5 percent growth to $1.1 billion, surpassing prior expectations. Moreover, remittances from overseas workers climbed by 1.4 percent in 2023, reaching $3.5 billion, and by 0.7 percent in January 2024, totaling $316.4 million. The committee underscores the Central Bank's commitment to vigilantly monitor national economic performance, global economic trends, and the interest rate policies of central banks both regionally and internationally. Source: Jordan News Agency