UPDATE 1-Kuwait cbank cuts discount rate by 50 bps to 2 pct-KUNA

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KUWAIT, Oct 3 (Reuters) - Kuwait's central bank is cutting its discount rate by 50 basis points to 2 percent, state news agency KUNA said late on Wednesday.

The cut will take effect from Oct. 4, KUNA said in an SMS alert. It gave no further details.

In some of his first comments to international media, Central Bank Governor Mohammad al-Hashel said on Monday current monetary policy settings were in line with economic developments.

He said the government should take all necessary measures to cut spending and focus on investing in projects that will benefit the major oil producer's economy in the long-term.

Kuwait booked a record budget surplus of 13.2 billion dinars ($47 billion) in the fiscal year that ended in March thanks to robust oil income and lower spending than planned.

(Reporting by Sylvia Westall; Editing by Alison Williams)


Keywords: KUWAIT RATE/