In a bid to revive the economy and boost investments, the Central Bank of Jordan (CBJ) has slashed interest rates on overnight deposits and inter-bank loans from 3.75 percent to three percent. The decision followed a similar move last October that cut rates from 4.5 percent to 3.75 percent.
The interest rate cut is part of the central bank’s strategy to reverse the old tendency of investors keeping their money risk-free in the banks, while enjoying high interest rates of up to six percent. Deposits in the Kingdom stood at $9.8 billion this past April.
Jordan’s monetary authorities, vitalized by a record three billion dollars in foreign reserves, have gradually cut high interest rates over the last two years. The government has been urging the central bank to push commercial banks to reduce lending rates and thereby accelerate economic growth. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
