Kuwait raises interest rate after US Fed hike

Kuwait on Wednesday raised its benchmark discount rate by 25 basis points to 2.75 percent after the US Federal Reserve hiked its rate, the central bank said. Central bank governor Mohammad al-Hashel said in a statement the increase was taken "to ensure the continued competitiveness," of the Kuwaiti dinar in light of interest rate movements on major currencies.
The hike will be effective from Thursday, the statement said. The Fed on Wednesday raised the benchmark interest rate by a quarter point citing higher inflation. The Kuwaiti decision was taken although the emirate is the only member of the six-nation Gulf Cooperation Council (GCC) not to peg its currency to the US dollar.