CBK Confirms Stability of Kuwait’s Monetary and Financial Systems

Kuwait, 19 December, 2024 : The Central Bank of Kuwait (CBK) has affirmed that its assessment of the local economic and financial data underscores the resilience and soundness of Kuwait’s monetary and financial stability.

In a statement, the CBK emphasized its ongoing efforts to monitor economic indicators and geopolitical developments, which impact the local economy. While inflationary pressures have eased globally, major central banks are recalibrating monetary policies and reducing interest rates in 2024. However, growth prospects remain uncertain due to geopolitical risks and supply chain challenges.

The CBK highlighted its gradual and balanced approach to adjusting the discount rate, recently reducing it by 25 basis points to 4.00% in September 2024. It also noted a decline in inflation from 4.71% in April 2022 to 2.44% in October 2024, with an average of 3.00% during January-October 2024.

Monetary and banking indicators show stability, with residents' deposits growing by 4.2% in October 2024 compared to the previous year. Credit facilities to residents also rose by 3.2%. The CBK remains committed to using all necessary monetary tools to maintain stability and support sustainable economic growth in Kuwait.