The Board of Directors at CBK cut the discount rate by 25 basis points to 4% instead of 4.25% effective today 19th September.
This came after the US Federal Reserve decided yesterday to cut interest rates by 50 basis points, in line with market expectations, so that the dollar interest rate ranges between 4.75% and 5%. It is the first reduction since March 2020, and another reduction is expected before the end of this year, as reported by Al Anba.
CBK, in a press statement said yesterday that its decision was a result of its consistent monitoring of economic conditions locally and globally, and with the end of the monetary tightening cycle that began in March 2022 in most global central banks.
