Central Bank retains discount rate at 3%

KUWAIT: Boursa Kuwait wrapped up yesterday's session with the All Share Market Index gaining 50.2 points to reach 5552.5 points, an increase worth 0.91 percent. Volume of traded shares, under the upper benchmark, amounted to 261.09 million, done through 11475 spot transactions, valued at KD 89.14 million.

The Main Market Index dropped 1.8 points to settle at 4667.2 points, a decline worth 0.04 percent, amid a stock volume of 66.11 million shares, done in 2,558 spot dealings, valued at KD 4.4 million. The Premier Market Index had also risen by 75.3 points to reach 6009.9 points, which was an increase of 1.27 percent through stock volume of 194.9 million , done in 8,917 spot deals, valued at KD 84.6 million.

Discount rate at 3%
"The move aims to maintain the monetary and fiscal stability and support the atmospheres conducive to non-inflationary growth in the non-oil economic sectors," the CBK Governor Dr Mohammad Al-Hashel said in a statement received by KUNA. The CBK decision aims to enhance the competitiveness and attractiveness of the local currency as a pool for domestic savings, he pointed out."

It is made in line with the trajectories of the basic financial policy of the country and in the light of continuous review of the world economic outlook and financial developments, including the interest rate trajectories of major currencies," It comes a few hours after the US Federal Reserve cut the interest rates for the US dollar amid concerns about slower global economic growth rate," Dr Al-Hashel noted."

The CBK decisions draw on the data of the general economic performance, the indicators of local liquidity, the movements of savings and bank credits, and the interest on Kuwaiti dinar and the world's major currencies, notably the US dollar." These data serve as parameters for determining the upward or downward movement of the local interest rates," Dr Al-Hashel explained. He reiterated the commitment of the CBK to watching the developments in global economic, monetary and banking sectors continuously with a view to adapting the local monetary policy to them and maintaining the atmospheres conducive to economic growth.
Earlier today, the Federal Reserve Board brought down the targeted range of its key interest rate by 0.25 basis points to 1.75 percent - 2 percent. The Fed's policymakers ratcheted up the interest rates seven times in 2017-2018 while the CBK did so two times in the same period, the last of which was in March 2018; the CBK skipped three out of four interest rate hikes of the Fed. - Agencies