CBK keeps discount rate at 3%

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KUWAIT CITY, Sept 19, (KUNA): Kuwait’s Central Bank decided to keep the discount rate unchanged at its current level of 3 percent, said the CBK governor announced in a statement Wednesday. “The move aims to maintain the monetary and fiscal stability and support the atmospheres conducive to non-inflationary growth in the non-oil economic sectors,” the CBK Governor Dr Mohammad Al-Hashel said in a statement received by KUNA.

The CBK decision aims to enhance the competitiveness and attractiveness of the local currency as a pool for domestic savings, he pointed out. “It is made in line with the trajectories of the basic financial policy of the country and in the light of continuous review of the world economic outlook and financial developments, including the interest rate trajectories of major currencies. “It comes a few hours after the US Federal Reserve cut the interest rates for the US dollar amid concerns about slower global economic growth rate,” Dr Al- Hashel noted.

“The CBK decisions draw on the data of the general economic performance, the indicators of local liquidity, the movements of savings and bank credits, and the interest on Kuwaiti dinar and the world’s major currencies, notably the US dollar. “These data serve as parameters for determining the upward or downward movement of the local interest rates,” Dr Al- Hashel explained. He reiterated the commitment of the CBK to watching the developments in global economic, monetary and banking sectors continuously with a view to adapting the local monetary policy to them and maintaining the atmospheres conducive to economic growth.

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