The Central Bank of Kuwait (CBK) has maintained its discount rate at 3.5 percent, citing sound and strong monetary and financial stability conditions across the country. The decision reflects the CBK’s assessment of the latest local economic and financial data, alongside its ongoing monitoring of global economic indicators and geopolitical developments that could affect Kuwait’s economy.
According to the CBK’s latest monetary and banking data, Kuwait’s broad money supply (M2) increased by 1.9 percent in July 2026 compared with the same month last year. This growth indicates that current monetary trends remain consistent with local economic conditions. Residents’ deposits with local banks showed stronger growth, rising by 9.8 percent year-on-year, while credit facilities extended to residents increased by 4.8 percent over the same period.
The CBK emphasized its commitment to maintaining stability in Kuwait’s financial system. The central bank stated it will continue to closely monitor both global and domestic economic and monetary developments, ready to implement appropriate measures when necessary. These measures will be executed through available monetary policy and macroprudential tools, applied in a gradual, balanced and flexible manner to support and strengthen monetary and financial stability.
The decision to hold rates steady suggests the CBK views current economic conditions as stable enough to warrant no immediate policy adjustment. The growth in residents’ deposits and credit facilities indicates continued confidence in the local banking system and ongoing economic activity among Kuwait’s population.
What This Means for Expats: The unchanged interest rate of 3.5 percent affects savings accounts and loan products offered by Kuwaiti banks, so expats should review their banking arrangements to understand how this rate applies to their deposits and any outstanding credit facilities.
Source: Times of Kuwait
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