The Central Bank of Jordan announced on Thursday that it has decided to raise its main interest rate by 25 basis points.
This move comes in alignment with the decision of the US Federal Reserve, as Jordan’s currency is pegged to the dollar.
The decision was conveyed through an official statement issued by the central bank.
The Federal Reserve had raised its interest rates by 0.25 percentage point on the previous day, with Fed Chair Jerome Powell indicating that the U.S. economy still needed to slow down and the labor market to weaken for inflation to return to the central bank’s target of 2%.
This marks the 11th rate hike by the Federal Reserve in its last 12 meetings, setting the benchmark overnight interest rate in the range of 5.25%-5.50%.
This level was last observed just before the 2007 housing market crash and has not been consistently surpassed in approximately 22 years.
