Kuwait's Central Bank holds discount rate at 3.5%

The Central Bank of Kuwait announced that, as part of its continuous monitoring of key global economic and monetary variables and indicators, geopolitical developments, and their potential implications for the local economy, its current assessment of the available local economic and financial data and information reflects the soundness and resilience of monetary and financial stability in the State of Kuwait, and that monetary trends are consistent with the local economic conditions.

The latest monetary and banking data indicate that the broad money supply (M2) increased by approximately 1.9% in July 2026 compared to the same month of the previous year. Additionally, both the balance of residents' deposits in local banks and the balance of credit facilities extended to residents rose by approximately 9.8% and 4.8%, respectively, in July 2026 compared to the same month in 2025. In this regard, it is noted that the current discount rate stands at 3.5%.

In conclusion, the Central Bank of Kuwait reaffirmed its continuous and diligent monitoring of global and local economic and monetary developments, ensuring the adoption of necessary measures through the deployment of available monetary policy tools and macroprudential instruments, adopting a gradual, balanced, and flexible approach to enhance monetary and financial stability in the State of Kuwait.