Kuwait's Central Bank decreases interest rates by a quarter of a percent.
The Central Bank of Kuwait has announced a significant move aimed at supporting sustainable economic growth in the country. On September 18, the bank lowered its discount rate by 25 basis points, from 4% to 3.75%.
This decision reflects the bank's ongoing monitoring of global economic and monetary developments, including geopolitical shifts and trade policies. The bank also takes into account the local economic context in its decisions.
The central bank's primary goal is to strengthen monetary and financial stability in Kuwait. To this end, the bank has reaffirmed its commitment to a gradual and balanced approach.
The bank's action comes at a time when the annual growth rate of resident deposits in Kuwait's banking system was approximately 4.2% as of the end of July 2025. This growth is largely driven by private sector deposits, which make up an impressive 94.3% of the total deposits in Kuwait's banking system.
The Kuwaiti dinar has remained relatively stable against major currencies, a testament to the bank's successful efforts in maintaining monetary stability. However, the bank has emphasised its close monitoring of local and global economic, monetary, and banking developments, and its readiness to take action to support the national currency if necessary.
Interestingly, there has been a slowdown in the inflation rate from 3.00% in July 2024 to 2.39% in July 2025. No specific details about the reasons for this slowdown or the stability of the Kuwaiti dinar were provided.
The bank also highlighted its focus on interest rate trends on major currencies. This suggests that the bank's decision could be influenced by global economic conditions. However, no information about the potential impact of the Central Bank's rate cut on the Kuwaiti economy was given.
The bank has also reiterated its emphasis on maintaining confidence in the national currency. It is ready to employ appropriate tools and measures to enhance this confidence.
In conclusion, the Central Bank of Kuwait's decision to reduce the discount rate is a strategic move aimed at supporting sustainable economic growth in Kuwait. While the exact implications of this decision are yet to be seen, the bank's commitment to maintaining monetary and financial stability remains unwavering.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Nepal's Journey: Evolution from Street Life to Political Power
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
