Central Bank of Jordan cuts interest rates by 50 basis points

The Central Bank of Jordan has decided to cut interest rates on key monetary policy instruments effective from June 25, 2014.
According to the bank's decision, the interest rate on overnight Deposit Window Facility will be decreased by 50 basis points to 2.75%, while the interest rate on Weekly/Other Repurchase Agreements will be decreased by 50 basis points to 3.0%.
The Rediscount rate and the Overnight Repurchase Agreements will remain unchanged at 4.25% and 4.0%, respectively, according to a press release issued by the bank.
"This decision was prompted by recent positive developments in the fundamentals of the economy, acceptable level of expected inflation, the increase in the attractiveness of the JDs denominated assets as well as a significant improvement in the current account, reflecting a robust growth and a comfortable level of foreign exchange reserves," the bank said.
The decision attempts to promote investments, economic growth and job creation through making provision for credit at lower costs for various economic sectors.
The CBJ will continue to monitor the economic and financial developments, domestically and globally, and will stand ready to act proactively to ensure monetary stability and promote an attractive investment climate.