The Central Bank of Kuwait steers policy through its discount rate, which stands at 3.50 per cent

Background

The Central Bank of Kuwait's main policy instrument is the discount rate, the rate at which it lends to local banks.
The Central Bank reduced the discount rate by 25 basis points from 3.75 per cent to 3.50 per cent, effective 11 December 2025, and it has stood at that level since.
The stated aim of the cut was to keep pace with developments in the local economy, stimulate economic activity and maintain the financial stability of banks and financial institutions.
The Central Bank said its indicators showed sustained relative stability of the Kuwaiti dinar exchange rate against major currencies and described the dinar as an attractive store of domestic savings.
It added that it would keep monitoring developments and use available monetary policy and macroprudential tools in a gradual and balanced approach.
The Kuwaiti dinar is among the world's highest-valued currencies.