Kuwait

Mildly restrictive

Policy rate

3.50%

Last move Dec 2025

Inflation

2.36%

As of null

Real policy rate

1.14%

Policy rate less inflation

Debt to GDP

22.30%

2026 est.

Inflation targetNone published

Policy rate vs target—

Last move-25 bps cut

Months at current rate9

Real GDP growth-0.60%

Next scheduled decisionNot published

Policy rate path, latest five years. Cycle peak 6.25% (Jul 2006).

The verdict

Kuwait sets its policy rate at 3.50%, against inflation of 2.36% — a real rate of 1.14% after inflation. The most recent decision was a 25bp cut in Dec 2025. The rate has held there for about 9 months. Inflation targeting: No target; USD-weighted currency basket peg. On the fiscal side, the economy carries government debt of 22.3% of GDP (2026 est.) and real GDP growth of -0.6%.

Sources: policy rate and cycle history — BIS central bank policy rates (WS_CBPOL); inflation — national statistical agencies; debt and growth — IMF World Economic Outlook. Methodology: https://www.globalfinancialinfo.info/methodology/policy-rates · Dataset: https://www.globalfinancialinfo.info/global-economy · Free to print and share for non-commercial classroom use (CC BY-NC-ND 4.0).

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