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CBK raises discount rate by quarter percentage point to 2.75 percent

CBK raises discount rate by quarter percentage point to 2.75 percent
KUWAIT, Aug 10 (KUNA) -- The Central Bank of Kuwait (CBK) will raise the discount rate by 0.25 percent from 2.50 percent to 2.75 percent as of Thursday (tomorrow), said CBK Governor Basel Al-Haroon on Wednesday.
In addition, the bank decided to change the rates of monetary policy instruments by varying percentages for the whole interest rate, including repurchases (Repo), CBK bonds and tawarruq, term deposits, direct intervention instruments, as well as public debt instruments.
In a press release, Al-Haroon added that this decision was taken in light of the latest economic developments on local and international levels and geopolitical developments that resulted in high global inflation rates, he said, indicating that this has an impact on consumer price index in Kuwait, he noted.
The decision also came in light of the developments of local banking statements following the CBK decision issued on July 28, 2022, he stated.
The bank took into consideration the nature of Kuwait's economy open to the world that required following up local and international financial and economic data and information as well as keeping up with the major international interest rate in line with an approach of gradual moving of discount price, he said.
This aims at boosting environment that supports sustainable economic growth, mainly the non-oil sectors, and maintaining monetary and financial stability and attractiveness of the national currency as a store of the local savings, he explained.
The CBK will continue to closely monitoring monetary and economic happenings at local and international markets so as to take any additional measures required to safeguard the financial and monetary stability in Kuwait, he concluded. (end) fnk.hm