The Central Bank of Kuwait kept its key discount rate at 3.50% in September 2026, saying current data showed "the soundness and strength of monetary and financial stability" in the country. Gulf oil and gas exporters generally track US Federal Reserve rate decisions because most regional currencies are pegged to the US dollar. Kuwait is an exception: the Kuwaiti dinar is pegged to a basket of currencies that includes the dollar. Most Gulf Cooperation Council central banks raised rates after the Federal Reserve’s latest hike. Kuwait’s economy is expected to contract 8.1% this year after the Iran war disrupted energy shipments through the effective closure of the Strait of Hormuz, damaged energy production facilities and reduced traffic, hurting tourism and business across the Gulf.