Press Releases

In line with the Central Bank of Kuwait’s (CBK) ongoing efforts to monitor all economic and monetary indicators, as well as geopolitical developments and their impact on global economic conditions and its subsequent effects on the performance of the local economy, and in response to the imperatives dictated by such developments, it becomes crucial that policies are directed in alignment with the specific requirements and prevailing conditions of each economy, thus, CBK has issued a statement affirming that its current assessment of the available local economic and financial data underscores the soundness and resilience of monetary and financial stability in the State of Kuwait.

In a statement issued by CBK, it was noted that, on a global economic front, inflationary pressures have eased, albeit unevenly, due to the implementation of monetary tightening policies across many advanced and emerging economies since March 2022. This has prompted a trend among major central banks towards recalibrating the monetary policy cycle and gradually reducing interest rates throughout 2024. While economic growth rates are anticipated to stabilize significantly in 2025, growth prospects remain affected by prevailing uncertainties stemming from numerous risks and challenges, including the persistence of geopolitical tensions and the potential resurgence of supply chain disruptions.

With regard to monetary policy developments in the State of Kuwait, the statement emphasized that CBK has adopted a gradual and balanced approach in adjusting the discount rate, ensuring alignment with the local economic conditions, maintaining macroeconomic stability, and enhancing sustainable growth. Therefore, CBK cut its discount rate by 25 basis points, reducing it to 4.00% as of September 19, 2024.

At the macroeconomic level, the CBK’s statement highlighted that inflation rate has slowed from about 4.71% in April 2022 to 2.44% in October 2024, with the average inflation rate reaching about 3.00% during the period of January-October 2024, compared to 3.64% in 2023. The provided data also exhibit a sustained relative stability in the KWD exchange rate against major currencies. On the monetary and banking indicators fronts, residents’ deposits balances in the banking system exhibited a growth of about 4.2% at the end of October 2024, compared to the corresponding period in 2023, while the private sector’s deposits denominated in KWD constituted 95.1% of the total private sector deposits at the end of October 2024. Similarly, the balances of credit facilities to residents recorded a growth of about 3.2% during the same period compared to the end of the corresponding month of the previous year, providing supportive momentum for economic growth across various sectors of the local economy.

In its concluding remarks, CBK emphasized that its decisions are guided by a thorough reading and comprehensive analysis of all available indicators and data, alongside continuous and rigorous monitoring of global and local economic and monetary developments. The CBK stands ready to implement the necessary measures and utilizing its full range of monetary policy tools, while carefully considering the structural features of the national economy. Furthermore, the CBK indorsed its commitment to a gradual and balanced approach aimed at preserving monetary and financial stability, enhancing the attractiveness of the national currency as a lucrative and reliable store for local savings. These collective efforts will ultimately foster sustainable economic growth in the State of Kuwait.