Kuwait's Central Bank decreases interest rates by 0.25%
Kuwait Central Bank Lowers Discount Rate in Response to Global Economic Trends
In a move aimed at supporting sustainable economic growth in Kuwait, the Central Bank of Kuwait announced a 25-basis-point reduction in its discount rate on September 18, 2025. The new discount rate will be 3.75%, down from the previous 4%.
The decision was influenced by the local economic context of Kuwait and global economic, monetary, and banking developments. The central bank has been closely monitoring these trends, including the US Federal Reserve's interest rate cut announced on September 17, 2025.
The Kuwaiti dinar remained relatively stable against major currencies as of July 2025, and by the end of the same month, resident deposits in Kuwait's banking system grew by approximately 4.2% annually. Private sector deposits in Kuwaiti dinars accounted for 94.3% of total private sector deposits in the banking system.
The central bank reaffirmed its commitment to a gradual and balanced approach to maintaining monetary and financial stability. It also emphasized its readiness to employ appropriate tools and measures to enhance confidence in the national currency.
The reduction in the discount rate is part of the central bank's efforts to support economic growth while keeping inflation in check. The inflation rate in Kuwait slowed down from 3.00% in July 2024 to 2.39% in July 2025.
The central bank did not mention any specific date for its next monetary policy decision. However, it continues to focus on interest rate trends on major currencies and global economic, monetary, and banking developments, including geopolitical shifts and trade policies.
The central bank is committed to strengthening monetary and financial stability in Kuwait and aims to support sustainable economic growth in the country.
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