AMMAN- The Central Bank of Jordan said on Wednesday that it was cutting its main interest rates by 50 basis points to encourage local consumption and the investment needed to spur economic growth.

The benchmark interest was cut to 3.50% from 4.00%, a senior central bank official told Reuters.

Businesses have been complaining about weak investor confidence, with some sectors hit by a downturn and drop in profitability.

The government has unveiled several stimulus measures in the last few months, from cutting fees for real estate transactions to giving incentives for exporters and industry to revive stagnant business activity.

The International Monetary Fund and Jordan reached a agreement in January on a new four-year programme focused on growth and stimulating job creation to rejuvenate economic growth.

The IMF expects Jordan’s economy to grow around 2.1% in 2020 but gradually rise in the next few years to 3.3 % by the implementation of structural reforms.

(Reporting by Suleiman Al-Khalidi; Editing by Kevin Liffey and Pravin Char) ((suleiman.al-khalidi@thomsonreuters.com; +96279-5521407;))