Jordan Central Bank Predicts Global Interest Rate Decrease Starting in the Second Quarter

Adel Sharkas, the Governor of the Central Bank of Jordan, stated on Saturday that global indicators suggest that the monetary tightening cycle has ended.

In statements during the Jordanian Banking Summit for 2024 as reported by “Al-Mamlaka” channel, Sharq expects a global decrease in interest rates starting from the second quarter of the current year, by 25 basis points in each quarter.

He affirmed that the local economic file has achieved numerous accomplishments during the year 2023, despite the fragile global environment and the state of uncertainty witnessed by the world.

It was also mentioned that Jordan’s commitment to economic reform and its possession of a stable financial and monetary environment have earned the trust of international institutions, including credit rating agencies that have all agreed on Jordan’s stable credit outlook for 2023, which confirms the soundness of the Kingdom’s economic approach.

It was pointed out that 2023 witnessed a positive performance in several economic indicators, indicating that the national economy was able to achieve an economic growth of around 2.8 percent in the second quarter of 2023, with an average growth of 2.7 percent in the first three quarters of 2023.

He also pointed out that in 2023, with all the challenges it faced, the Jordanian banking sector demonstrated its strength and resilience, particularly in terms of having high levels of capital, which are among the highest in the Middle East and North Africa region, reaching 17.4 percent at the end of the first half of 2023. Additionally, the banking sector enjoyed comfortable levels of legal liquidity, amounting to approximately 135.4 percent.

Sharx explained that despite the challenges faced by the national economy, non-performing debts decreased to 5 percent by the end of the first half of 2023. This is a relatively low percentage and within manageable levels.