The Central Bank of Kuwait (CBK) has decided to raise the discount rate by a quarter percentage point from 2.50 percent to 2.75 percent effective August 11, 2022, and 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.
Governor of the Central Bank of Kuwait (CBK), Basel A. Al-Haroon said the decision was taken in light of the recent international economic and geopolitical developments that affected the global inflation rates and, hence, the consumer price index in Kuwait.
The Governor added that the rate hike was to keep up with the major international interest rates, to reinforce a favourable environment for economic growth, particularly in the non-oil sectors, and maintain the monetary stability and attractiveness of the national currency as a store of local savings.
