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 2.50% instead of 3.0% effective on 8-2-2010.

H.E. the Governor indicated that the goal of this reduction in discount rate is to establish appropriate atmosphere to reinforce growth in non-oil sectors in the national economy by reducing credit cost especially with more available indicators that point to continued decline in inflationary pressures in the local economy. Data on the consumer price index in the State of Kuwait, as prepared by the Central Statistical Office, indicate continued decline - for the seventh successive month - to reach 5.2% in April 2009.

H.E. the Governor added that along with the decline in inflationary pressures; continued attractiveness and competitiveness of the national currency, as evidenced by the growth of deposits in KD in the domestic banks, provides an adequate space for discount rate reduction.

In addition, H.E. the Governor referred that reducing the discount rate helps in creating the appropriate atmosphere for the growth of bank credit taking into consideration the relation between cost of credit and discount rate within specific margins.

H.E. the Governor explained that this reduction in discount rate is the sixth made by the CBK since 7 October 2008, within CBK's policy that aims to reinforce confidence in the national economy and stimulating economic growth.

H.E. the Governor concluded his statement by emphasizing that CBK shall continue its close monitoring of the developments in the domestic economy, and will not hesitate in taking appropriate actions to reinforce the elements of sustainable growth in the various economic sectors.