Kuwait central bank lowers interest rate

30 October 2008
The Central Bank of Kuwait has been the first to respond to the latest interest rate cut by the US Federal Reserve (Fed), with the Middle Eastern bank dropping its benchmark rate by 50 basis points to 2 per cent.

Kuwait, which pegs its currency to a basket of currencies dominated by the dollar, also cut its discount rate by 25 basis points to 4.25 per cent.

On 29 October the Fed cut interest rates by 50 basis points to 1 per cent to help stimulate the US economy.

Other Gulf countries are expected to quickly follow suit due to their currency pegs to the dollar.

Saudi Arabia has already cut its repurchase rate from 5 per cent to 4 per cent in a bid to stimulate interbank lending.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications