Kuwait Central Bank maintains current discount rate at 3%

KUWAIT: Kuwait’s Central Bank decided on Wednesday to keep its discount rate unchanged at its current level of 3 percent. The decision was made to improve the non-inflationary growth-enabling environment, CBK governor Mohammad Al-Hashel said. Also, to ensure the continued attractiveness of the national currency – the Kuwaiti Dinar – as a reliable store of domestic savings, he added. It comes in light of CBK’s thorough analysis of local and international economic and financial developments, interest rates trajectories of major currencies and the most recent US Fed decision to lower interest rates.

The current rate, adopted in March 2018, remains unchanged in spite of witnessing three consecutive US Fed interest rate rises since. CBK’s monetary policy decisions are driven by the review and analysis of the latest available economic, monetary and banking data and information, he added. This is namely in regards to the overall economic performance, bank deposits and credit, interest rates on major currencies, predominantly the US dollar, and the Kuwaiti dinar’s exchange rate regime and interest rate. Kuwait’s monetary authority is confident these measures would do much to maintain a healthy margin in favor of the national currency, boost returns on dinar deposits and allow for a conducive environment for the economic growth. – KUNA

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