Press Releases
CBK Cuts its Discount Rate by 50 Basis Points to 2%
The Governor of the Central Bank of Kuwait (CBK) Dr. Mohammad Yousif Al-Hashel announced that after due follow-up of the developments in the economic, monetary and banking situations domestically and globally the Board of Directors of CBK has decided to cut the CBK Discount rate by 50 basis points from 2.50% to 2% effective 4-10-2012.
The Governor indicated that this reduction comes in view of the developments in domestic economic situations, where various economic indicators and monetary and banking aggregates emphasize the need to reinforce a pro-growth environment in the non-oil sectors of the national economy by reducing the cost of credit while maintaining the financial strength of the banking and financial sector units, as well as ensuring the attractiveness and competitiveness of the national currency as a store of domestic savings, especially with the continued decline of inflationary pressures in the national economy.
The Governor added that this reduction in discount rate is an additional measure taken by CBK to reinforce confidence in the national economy and motivate economic growth.
The Governor concluded his statement by asserting that CBK is continuously following up the developments of domestic economic situations, and will not hesitate to take necessary steps to strengthen the elements of sustainable growth in the economy.
