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CBK keeps discount rate at 2.75 pct

KUWAIT, Dec 13 (KUNA) -- The Central Bank of Kuwait (CBK) decided on Wednesday to keep the discount rate unchanged at 2.75 percent.
On the basis of a thorough study of latest data, the CBK's board of directors maintained the discount rate at current level to enhance the atmosphere of economic recovery and the attractiveness and competitiveness of national currency, the CKB said in a press release.

The CBK continues to use the available means of the monetary policy with a view affirming the status of the national currency as a credible and profitable facility for local savings, it said.
As part of the regular surveys of the economic, fiscal and banking trends, the outlook of the interest rates on major currencies, notably the US dollar, and the recent decision of the US Federal Reserve Board of Governors, the CBK decided to keep the discount rate unchanged at 2.75 percent, the statement affirmed.
The CBK is keen on boosting the non-inflationary recovery in the non-oil economic sectors and maintaining the fundamentals of its fiscal policy, governor of the bank Dr. Mohammad Al-Hashel said.
Recent data show that the local banks are able to accommodate to the CBK measures, notably those relating to ratcheting up the interest rates on KD deposits under the ceiling of the interest rates on loans of these banks' as per the current discount rate, he noted.
The local banks are vying for borrowers under the low credit rates and the modest growth rates of the non-oil sector, Dr. Al-Hashel pointed out.
The CBK governor recalled the last decision on June 14 to keep the discount rate unchanged while the Federal Reserve Bank decided at the same time to increase the interest rate.
There was need to enhance the KD competitive edge as an attractive facility for local savings and boost the local credit growth, he went on.
Dr. Al-Hashel reaffirmed the CBK commitment to watch the latest economic, fiscal and banking developments and take the necessary measures to bolster up the economic recovery. (end) fnk.gb