Kuwait Bank Rate Remains Unchanged

Posted by amrina alshaikh on November 3rd, 2019

Multiple big decisions have impacted the Kuwait bank rate. In the latest news, the Kuwait Bank or Central Bank has confirmed that the discount rate will remain the same at 3%.

This statement pertaining to the discount Kuwait bank rate was officially announced by the Governor of the Central Bank of Kuwait (CBK) in a statement that has already been released. The Kuwait Bank is reportedly aiming at maintaining proper fiscal and monetary stability for the economy along with backing the sectors of industry which can witness good growth in the present scenario. This, of course, pertains to non-oil sectors and the growth perceived should not be inflationary as stated by the Governor of CBK, Rd. Mohammad Al-Hashel.

The decision taken by the CBK aims at boosting the overall attractiveness and competitiveness of Kuwait’s local currency for encouraging higher savings in the domestic market. This decision is in sync with several global movements and the financial policy of Kuwait in general as per officials. This decision came some hours after the interest rates were reduced for the US dollar by the Federal Reserve amidst an environment where there were anxieties relating to future economic growth worldwide.

The overall economic scenario is the fuel for the decision taken by the CBK as per market experts. These include liquidity in the local market, savings shifts and bank credit along with interest on the KD (Kuwaiti dinar) along with the major global currencies, including the US dollar. These parameters serve as foundations for working out the local rates of interest and their movement, whether downwards or upwards. The CBK is keenly monitoring major global developments that impact the banking, economic and monetary sectors. Local policies will be in sync with these developments as per the bank, along with an emphasis on steady growth.

In other news, Egyptian banks have also cut their rates of interest post the decision announced by the Central Bank of Egypt or CBE pertaining to slashing the interest rates by a quantum of 1%. Banks have been holding meetings for working out rates of interest on retail loans and other savings instruments. Interest will remain the same at 14% for fixed-rate savings certificates for 3-month periods. This will be 14.25% for quarterly return certificates.

NBK (National Bank of Kuwait) has kept the rate of interest at 12% and 12.5% for 3 month fixed rate savings certificate and quarterly returns certificates respectively. The rates of interest have been lowered by the bank to the tune of 0.5% on its deposit and savings accounts. Interest rate cuts are steadily becoming the norm across several economies worldwide in anticipation of another widespread economic slump and the need to stimulate domestic growth.