Decision
Lower
Rate change
25 bps
discount rate
3.5%

The Central Bank of Kuwait (CBK) cut its discount rate by 25 bp to 3.50%, effective 11 December 2025, saying the step will stimulate activity across sectors while preserving banking-sector and broader financial stability amid evolving domestic and global economic conditions. The move extends the easing cycle that saw a 25 bp reduction in September, when the rate was lowered to 3.75% from 4.00%. CBK notes that the Kuwaiti dinar has remained relatively stable and attractive as a store of savings, while earlier data showed consumer inflation slowing to 2.39 % in July 2025 from 3.00 % a year earlier and resident bank deposits expanding 4.2 % year on year. The exchange rate continues to display “sustained relative stability,” and the central bank will keep monitoring international economic and monetary developments, pledging to act with its full set of monetary and macro-prudential tools to reinforce monetary and financial stability.

Rate evolution

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