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Sun 27 Sep 2009 01:17 PM

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Kuwait inflation seen falling to below 5%

Central bank governor see further decline in rate, says strict monetary policy in place to tackle global crisis.

Kuwait's inflation rate will continue to fall during the last quarter of 2009 to below five percent, the governor of the Gulf state's Central Bank (CBK) said on Sunday.

Sheikh Salem Abdulaziz Al-Sabah said that the inflation rate for the last months of 2009 "will keep on slumping" as the impact of the global economic crisis continues.

The governor's remarks came in an interview with Arabic daily Awan newspaper, KUNA News Agency reported.

He said that, based on annual reports, the rate dropped to 5.9 percent during February of 2009, while it was at 11.6 percent in August of 2008.

CBK had adopted a strict supervisory monetary policy since October 2008 in an attempt to help the national economy to recover from the ramifications of the global economic crisis which resulting in the lack of liquidity and credit, he added.

He said that "CBK had provided the market with the liquidity it needed, facilitated issuing credits and applied notable cuts on interest rates" in an effort to stabilise the market.