31 May 2011
Amman - Governor of the Central Bank of Jordan CBJ, Sharif Faris Abdul Hamid Sharaf, has decided to raise interest rates on the main instruments of the monetary policy by 25 basis points effective 1st, June 2011.
Under the decision, deposit window interest rate is raised to 2.25 percent a year from 2 percent, and the repo rate to 4.25 percent a year instead of 4 percent while the rediscount rate was raised to 4.5 percent annually from 4.25 percent.
According to a CBJ statement issued Tuesday, the CBJ governor said the decision aims primarily to confirm monetary stability and find a proper environment to contain "inflationary pressures." He added that the resolution is intended to maintain the competitiveness of the return of financial instruments saved in Jordanian Dinar and in order to strengthen the pillars of monetary stability and contribute to the rebalancing of a growing budget deficit and the deficit of the balance of payments.
Sharaf stressed the importance of maintaining a "prudent" monetary policy that protect national savings in Jordanian Dinar, ensure a stable exchange rate of the Jordanian dinar and keep an investment-friendly climate in the Kingdom to enable the national economy achieve higher growth rates.
The CBJ will continue to follow-up on economic variables and key domestic and international financial changes and will take appropriate monetary and banking measures, the governor asserted.
In February 2010, the CBJ lowered the interest rates on the main instruments of monetary policy by 50 basis points.
Amman - Governor of the Central Bank of Jordan CBJ, Sharif Faris Abdul Hamid Sharaf, has decided to raise interest rates on the main instruments of the monetary policy by 25 basis points effective 1st, June 2011.
Under the decision, deposit window interest rate is raised to 2.25 percent a year from 2 percent, and the repo rate to 4.25 percent a year instead of 4 percent while the rediscount rate was raised to 4.5 percent annually from 4.25 percent.
According to a CBJ statement issued Tuesday, the CBJ governor said the decision aims primarily to confirm monetary stability and find a proper environment to contain "inflationary pressures." He added that the resolution is intended to maintain the competitiveness of the return of financial instruments saved in Jordanian Dinar and in order to strengthen the pillars of monetary stability and contribute to the rebalancing of a growing budget deficit and the deficit of the balance of payments.
Sharaf stressed the importance of maintaining a "prudent" monetary policy that protect national savings in Jordanian Dinar, ensure a stable exchange rate of the Jordanian dinar and keep an investment-friendly climate in the Kingdom to enable the national economy achieve higher growth rates.
The CBJ will continue to follow-up on economic variables and key domestic and international financial changes and will take appropriate monetary and banking measures, the governor asserted.
In February 2010, the CBJ lowered the interest rates on the main instruments of monetary policy by 50 basis points.
© Jordan News Agency - Petra 2011
