The Central Bank of Kuwait said money supply growth remained at 18.7 per cent in August, the same rate as in the previous month.

In the latest figures released by the bank, M2 money supply, a measure of cash in circulation and savings and deposits, was KD24.5bn ($85.49bn), up from KD20.59bn at the end of August 2008. Money supply is used an indicator of future inflationary pressure. In July, the central bank said inflation fell to 5.9 per cent in February, from 6.8 per cent in January.

Total credit facilities to residents fell from KD984.3m at the end of July to KD762.8m at the end of August. The central bank also said total assets of the Kuwaiti banks rose to KD1bn by the end of August, from KD864.1m at the end of July.

Data for M3 money supply, the broadest measure of all the money in the economy, was not released.