Central Bank of Kuwait raises discount rate by quarter percentage point to 3.00 percent

PHOTO

The Central Bank of Kuwait (CBK) will raise the discount rate by 0.25 percent, which will be from 2.75 percent to 3.00 percent as of Thursday (tomorrow), said CBK Governor Basel Al-Haroon on Wednesday.

In addition, the bank decided to change the rates of monetary policy instruments by varying percentages for the whole interest rate, including repurchases (Repo), CBK bonds and tawarruq, term deposits, direct intervention instruments, as well as public debt instruments. In a press release, Al-Haroon added CBK monitors the dynamic movements of the economic indicators at both local and international levels in line with the a deliberate approach to assess the foreseen impacts thereof.

The statement noted that this contributes to the prudent management of the monetary policy that aims to reinforce the financial and monetary stability of the CBK-regulated entities, and helps affirms the attractiveness of the national currency as a lucrative and reliable store for domestic savings, on one hand, and foster an environment conductive to economic growth, on the other hand, taking into consideration the open nature of the Kuwaiti economy.

The Governor concluded, CBK will continue to closely monitoring monetary and economic happenings at local and international markets so as to take any additional measures required to safeguard the financial and monetary stability. (KUNA)