Decision
Lower
Rate change
25 bps
discount rate
3.75%

The Central Bank of Kuwait (CBK) cut its discount rate by 25 bp to 3.75 percent, effective 18 September 2025, citing easing inflation—from 3.00 percent in July 2024 to 2.39 percent in July 2025—and the need to adapt policy to shifting global economic, geopolitical and trade conditions while supporting the domestic economy. The CBK noted continued relative stability of the Kuwaiti dinar against major currencies and reported healthy monetary and banking indicators: resident deposits grew 4.2 percent year-on-year in July and KWD-denominated deposits made up 94.3 percent of private-sector holdings. Reaffirming its prudent, balanced approach, the central bank pledged close monitoring of local and international developments and said it stands ready to deploy additional tools to safeguard monetary and financial stability and sustain economic growth.

Rate evolution

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