Kuwait Interest Rate

The Central Bank of Kuwait reduced its key discount rate by 25bps to 4% in September 2024, marking its first rate cut since 2020. This move follows a prolonged period of keeping borrowing costs at their highest levels since 2008. The rate cut came in response to the US Federal Reserve's half-point rate reduction. The Governor of the Central Bank of Kuwait, explained that the decision was based on both local and global economic and banking conditions. The move is aimed at fostering sustainable economic growth by stimulating demand as inflationary pressures ease, with inflation slowing from 4.71% in April 2022 to 3.00% in July 2024. The Central Bank remains vigilant and ready to adjust its monetary policy tools as needed to support growth and maintain financial stability. Kuwait's currency, the dinar, is pegged to a basket of currencies, including the US dollar, influencing its monetary policy decisions.