CBK raises discount rate by half pct point

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Kuwait, Jan.25 (BNA): The Central Bank of Kuwait (CBK) Board of Directors decided to raise the discount rate by 0.50 percent from 3.5 percent to 4.0 percent effective as of tomorrow (January 26).


"The decision came in light of recent developments in the local and international economic conditions, local monitory and banking indicators and movements on KWD interest rate in Economics CBK raises discount rate by half pct point  the local market considering the changes to the interest rates on the other major currencies", said(CBK) Basel Al-Haroon in statement to KUNA.


It also comes in line with a progressive approach adopted by the CBK to reinforce the financial and monetary stability of the banking and financial units, and maintain the attractiveness of the national currency as a lucrative and reliable store for domestic savings.


The Governor added that CBK decisions for monetary policy, including those related to local interest rates, are based on the review and analysis of the latest available economic, monetary and banking data, e.g. the economic performance ratios, inflation rates, local liquidity indicators, movement of deposits and bank credit, and interest rates on Kuwaiti Dinar and other major currencies.