Kuwait CB reduces discount rate by 25 basis points

12/12/2025 10:19 AST

The Central Bank of Kuwait (CBK) announced on Wednesday a reduction in the discount rate by 25 basis points, bringing it down to 3.50 percent from 3.75 percent, effective Thursday.

In a press release, the Central Bank stated that this move comes as part of its ongoing monitoring of key global economic and monetary indicators and their potential impact on the performance of the local economy. This necessitates that policies be tailored to the specific requirements and circumstances of each economy. The bank added that the decision aims to keep pace with developments in the local economy and stimulate economic activity while maintaining the financial stability of banking and financial institutions.

Indicators as of the end of October 2025 show continued relative stability in the exchange rate of the Kuwaiti dinar against major currencies and its attractiveness as a rewarding vehicle for domestic savings. The Central Bank affirmed its continuous and diligent monitoring of global and local economic and monetary developments to ensure the implementation of necessary measures through the use of policy tools. The available cash and macroprudential tools are being utilized in a gradual, balanced, and flexible manner to enhance monetary and financial stability in the State of Kuwait.

QCB cuts rates
The Qatar Central Bank (QCB) decided Wednesday to cut current interest rates on deposits, loans, and repurchase agreements (repurchase) following an assessment of Qatar's current monetary policy. The QCB announced via its account on the X platform that it had reduced the deposit rate by 25 basis points to 3.85 percent, the lending rate by 25 basis points to 4.35 percent, and the repurchase rate by 25 basis points to 4.10 percent. The US Federal Reserve cut its interest rate by a quarter of a percentage point for the third time this year to 3.75 percent.

Bahrain follows suit
Similarly, the Central Bank of Bahrain also announced on Wednesday a 25 basis point reduction in the overnight deposit interest rate, from 4.50 percent to 4.25 percent, effective December 11, 2025. In a statement, the bank said the decision is part of its efforts to achieve monetary and financial stability in the Kingdom of Bahrain amidst developments in international financial markets.

KUNA