The Central Bank of Kuwait announced today that they will cut the discount rate by 0.5 % . So this means that bank loans will be at a rate of 6 % instead of 6.5 % . This will encourage people more to take loans. But I don’t know how flexible banks will be in granting loans especially that all banks have decreased their rates on deposits which will make it harder for them to increase their loan portfolio against deposit portfolio. Let’s wait and see!
May 13, 2009