The Governor of the Central Bank of Kuwait (CBK), Basel A Al-Haroon, stated that the CBK decided to raise the discount rate by 0.25% from 2.75% to 3.00% effective September 22, 2022. The CBK also decided to change the rates of monetary policy instruments by varying percentages for the entire interest rate yield curve, including repurchases (Repo), CBK bonds and tawarruq, term deposits, direct intervention instruments, as well as public debt instruments.
The Governor pointed out that the CBK monitors the dynamic movements of the economic indicators at both local and international levels in line with a deliberate approach to assess the foreseen impacts thereof.
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 affirm the attractiveness of the national currency as a lucrative and reliable store for domestic savings, on one hand, and foster an environment conducive to economic growth, on the other hand, taking into consideration the open nature of the Kuwaiti economy.
The Governor concluded that the CBK closely monitors the domestic and international economic and monetary developments, and takes any additional measures to safeguard the local monetary stability.