Central Bank of Kuwait Reports Steady Financial Stability Amid Global Shifts

CBK’s assessment emphasized a balanced approach to monetary policy, gradually tightening since March 2022 with nine discount rate hikes totaling 275 basis points, reaching 4.25% by July 2023. Recently, reflecting the end of the global tightening cycle, CBK lowered the discount rate by 25 basis points to 4.00% in September 2024, aiming to balance inflation control with economic growth.

Economic data show positive trends, including a drop in inflation from 4.71% in April 2022 to 2.75% in September 2024, and a steady exchange rate for the Kuwaiti Dinar. Banking sector indicators reflect strength, with resident deposits growing by 6.7% year-on-year in September 2024, and private sector deposits making up 95.2% of total deposits. Credit facilities also grew by 5.7% in the same period.

CBK affirmed its commitment to monitoring international markets closely to safeguard Kuwait’s financial stability and support sustainable economic growth.

Source : www.zawya.com