...

Jordan raises overnight rate to bolster dinar

Arab World Materials 3 December 2012 12:54 (UTC +04:00)
Jordan raises overnight rate to bolster dinar
Jordan raises overnight rate to bolster dinar

Jordan raised its overnight rate on dinar deposits on Monday by 75 basis points to 4 percent to bolster the currency at a time of regional uncertainty and domestic unrest Arabianbusiness reported.

It was the third time the Central Bank of Jordan (CBJ) has raised the deposit rate this year as it seeks to encourage savings in dinar-denominated assets.

The country faces a period of slow economic growth and worsening investor sentiment following civil unrest last month triggered by the lifting of fuel subsidies.

The bank said it kept its other key rates unchanged, with the discount rate staying at 5.00 percent and the one day repo rate at 4.75 percent

The bank raised rates last year after a period of cuts that ran from 2008, when the bank eased monetary policy to cushion the economy against the impact of the global financial crisis and to curb inflation.

Tags:
Latest

Latest