KUWAIT: The Central Bank of Kuwait raised the discount rate by a quarter percentage point from 2.25 percent to 2.50 percent starting from Thursday, CBK Governor Basel Al-Haroon said on Wednesday.
CBK will also change the rates of monetary policy instruments by varying percentages for the entire interest rate yield curve including repurchases, CBK bonds and Tawarruq, term deposits, direct intervention instruments, as well as public debt instruments, read a press release. The Governor pointed out that this decision comes in light of "recent developments in the local and international economic and geopolitical (sphere)" that have "affected the global inflation rates and, hence, the consumer price index in the State of Kuwait."
Haroon added that the "decisions taken by the CBK are based on a thorough monitoring of the latest local and global economic data with the aim to reinforce an environment inducing to economic growth, particularly in the non-oil sectors, and maintain the financial and monetary stability and attractiveness of the national currency as a store of the local savings." The Governor concluded that the CBK continues its monitoring of the local and international economic, monetary, and banking developments, and, whenever appropriate, shall take any additional measures to safeguard the financial and monetary stability in the country.