FX.co ★ Kuwait's Central Bank Lowers Benchmark Interest Rate to 3.50% Amid Economic Adjustments

In a strategic move to support economic recovery and adjust to evolving financial landscapes, the Central Bank of Kuwait has announced a reduction in its benchmark interest rate from 3.75% to 3.50%. This decision, effective as of December 10, 2025, marks a notable shift in the country's monetary policy, aimed at stimulating economic activity and ensuring financial stability within the region.

The reduction comes following a period of economic reassessment, where the previous rate of 3.75% had been maintained. By lowering the rate, the Central Bank intends to make borrowing more affordable for consumers and businesses, potentially boosting spending and investment across various sectors. This is seen as a proactive measure in response to both domestic and global economic conditions that have influenced market trends.

Economic analysts suggest that this rate adjustment could reinforce Kuwait's economic resilience amidst shifting global economic dynamics, while also enhancing the competitiveness of its financial environment. The reduction is likely to be welcomed by borrowers and investors alike, as it lowers the cost of financing and creates more favorable conditions for economic growth moving forward. With this move, Kuwait joins a global cohort of nations recalibrating monetary policies to navigate current and anticipated economic challenges.