Press Releases

H.E. the Governor of the Central Bank of Kuwait (CBK), Sheikh Salem Abdulaziz Al-Sabah, announced that the CBK Board of Directors has decided to cut the CBK discount rate by 50 basis points to 3% instead of 3.50% effective Thursday, 14-5-2009.

H.E. the Governor referred to the need during this period to strengthen the environment to bolster the growth of non-oil sectors in the national economy, through a reduction of the cost of credit, especially as more indicators point to receding inflationary pressures in the national economy, adding that the decision to cut the discount rate takes into account the continued growth of liquidity at local banks allowing them sufficient room to meet the financing requirements of their customers, and continue to maintain the competitiveness of the national currency as a medium of local saving.

It may be noted that the discount rate which the CBK sets is a pivotal rate to which are linked, within specific margins, the ceilings on interest rates on KD loans extended by local banks to their customers.

H.E. the Governor explained that this decision to cut the discount rate, the fifth by CBK since 10th of October 2008, represents yet another step in the intensive efforts of CBK aimed at reinforcing confidence in the national economy through stimulating domestic demand and thus strengthening economic growth of the non-oil sectors.

H.E. the Governor concluded his statement by emphasizing that CBK shall continue its close monitoring of the developments in the domestic economy. It will exert its utmost efforts to create an environment conducive to strengthening the fundamentals of sustained growth in the various sectors of the national economy.