Kuwait central bank raises discount rate by 25 bps to 3% – statement

By:

Published: Sep 21, 2022, 18:36 UTC

(Reuters) - The Central Bank of Kuwait said on Wednesday it will increase its discount rate by 25 basis points to 3% as of Thursday, after the U.S. Federal Reserve's three quarters of a percentage point rate hike.

The Kuwait Central Bank towers are pictured over the traditional Dhow harbor as business deals and institutional lending for Gulf have frozen, following an outbreak of coronavirus disease (COVID-19), in Kuwait City

(Reuters) – The Central Bank of Kuwait said on Wednesday it will increase its discount rate by 25 basis points to 3% as of Thursday, after the U.S. Federal Reserve’s three quarters of a percentage point rate hike.

The Kuwaiti dinar is pegged against a basket of currencies that includes the dollar, which gives it more flexibility to stray from Fed policy than other Gulf Arab countries, which have their currencies tied to the dollar.

(Reporting by Alaa Swilam and Mahmoud Mourad in Cairo; Writing by Yousef Saba)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products: