CBK slashes discount rate by 25 basis points to 4 percent

In light of its vigilant monitoring of the domestic and international economic developments and the end of the monetary tightening cycle initiated since March 2022 at most of global central banks, the Board of Directors of the Central Bank of Kuwait (CBK) decided to cut the discount rate by 25 Basis Points from 4.25 percent to 4 percent effective Thursday, September 19. In a press statement released on Wednesday, the Governor and Chairman of the CBK's Board of Directors, Basel A. Al-Haroon, pointed out that the decision is informed by the latest developments in the local and global economic, monetary, and banking conditions including the domestic liquidity indicators, movements in deposits, banking credit, and interest rates on KWD and the major currencies. The Governor further explained that this decision aims at fostering an environment conducive to sustainable growth in various economic sectors through stimulating aggregate demand. Given the declining inflationary pressures in the national economy, the a nnual inflation rate has slowed down from 4.71 percent recorded in April 2022 to 3 percent in July 2024. The Governor concluded by stressing the CBK's unwavering policy of monitoring economic, monetary and banking developments, and readiness to act, whenever needed, to direct the various monetary policy tools that support the sustainable economic growth, maintain the competitiveness and attractiveness of KWD as a lucrative and reliable store of local savings, and bolster the monetary stability and financial stability. Source: Kuwait News Agency