The Central Bank of Jordan (CBJ) cut basic lending rate 50 bps or 0.5 percent trimming the rediscount rate to 4.75 percent, the (repo) rate to 4.5 percent and the overnight window deposit rate to 2.5 percent, the bank said in a statement. This is the fourth consecutive cut in key interest rates since Nov. 25, 2008. CBJ decided to make this cut in light of the declining local inflation rates and the outlook for stable global interest rates at their current low levels through the medium term. The move comes within the bank s efforts to keep pace with local and international developments and to take any necessary measures to serve the economy. The CBJ noted that the significant slowdown in real growth rates and its impact on key economic variables were among the most prominent developments the bank had taken into account. The Jordanian consumer price index (CPI) which measures the inflation rate, dropped by 0.9 percent in the first 10 months of the year, compared with a rise of 14.4 percent in the same period of 2008. The country s Gross Domestic Product (GDP) grew by three percent in H1, compared with 8.9 percent for the same period of 2008.
