The Central Bank of Jordan reduced its benchmark interest rate by 25 bps to 6.25% on September 18, 2025, marking its first rate cut since December last year. The move came in the wake of a similar policy action by the Federal Reserve, reflecting the close alignment of Jordan’s monetary policy with Fed decisions due to the dinar’s peg to the US dollar. This latest cut brought borrowing costs to its lowest level since late 2022. The decision also follows easing inflationary pressures, with Jordan’s annual inflation rate slowing for the second consecutive month to 1.3% in August, down from 1.7% in July, reaching its lowest level since November 2024. Meanwhile, the Jordanian economy has maintained solid momentum, expanding 2.7% year-on-year in both Q1 and Q2, its strongest pace since Q3 2023, despite ongoing regional instability and broader global and domestic economic challenges.
