High interest rates in Jordan stifling economic growth, study finds.
The real interest rate in Jordan has a negative impact on economic growth, with a 1% increase leading to a 0.97% decrease in growth. Similarly, inflation rate increases by 1% result in a 0.85% decrease in economic growth. On the other hand, an increase in the money supply by 1% leads to a 0.49% increase in economic growth. To boost economic growth, it is recommended to pursue an expansionary monetary policy, reduce loan interest rates, and maintain stable inflation rates.