KUWAIT: The Central Bank of Kuwait raised the discount rate by a quarter of a percentage point from 2.25 percent to 2.50 percent starting Thursday, CBK Governor Basel Al-Haroon said on Wednesday.
The CBK will also change rates on monetary policy instruments by various percentages across the entire interest rate yield curve, including repurchases, CBK and Tawarruq bonds, time deposits, direct intervention instruments as well as government debt instruments, it said – a press release. The governor stressed that this decision comes in light of “recent developments in the local and international economic and geopolitical (sphere)” that have “affected global inflation rates and thus the consumer price index in the State of Kuwait.”
Haroon added that “decisions taken by the CBK are based on a thorough monitoring of the latest local and global economic data with the aim of strengthening an environment conducive to economic growth, especially in the non-oil sectors, and maintaining financial and monetary situation. the stability and attractiveness of the national currency as a repository of local savings.” The governor concluded that the CBK continues to monitor local and international economic, monetary and banking developments and, whenever appropriate, will take any additional measures to protect the financial and monetary stability of the country.