Kuwait cbank says rate cut to catalyse economy

KUWAIT, April 12 (Reuters) - Kuwait's central bank said it would reduce its benchmark discount rate by 25 basis points to 3.5 percent from Monday to reduce the cost of funding and catalyse the local economy, the state news agency reported.

"The decision to cut the discount rate at the central bank of Kuwait contributes another dose to push the wheel of local economic activity through cutting the cost os finance," Sheikh Salem Abdul-Aziz al-Sabah said, according to KUNA.

The move coincides with the enactment of a state support package for the financial sector, Sheikh Salem said.

(Writing by Inal Ersan; Editing by Daliah Merzaban)