50bps Rate Cut, But Lending Will Remain Tight

On March 12, the Central Bank of Jordan (CBJ) lowered its policy interest rates by 50bps, cutting the repo rate to 5.50% (and the re-discount rate to 5.75%). As the CBJ tries to support the economy through the global downturn, we expect further rate cuts through the year, and have pencilled in an end-2009 target of 4.00% for the repo rate.

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