Central Bank cuts key lending rate to boost credit access

Central Bank of Kenya Governor Patrick Njoroge briefing journalists after the Monetary Policy Committee meeting. CBK says credit to the private sector grew 6.6 per cent in the year to October. PHOTO | DIANA NGILA | NATION MEDIA GROUP

What you need to know:

  • T-bill rates, which are influenced by the levels of government borrowing, look set to be the biggest determinant of loan rates, bankers say.
  • CBK says scrapping of the interest rate cap had removed one of the concerns the Central Bank had about cutting the benchmark.

The Central Bank of Kenya (CBK) on Monday signalled commercial banks to cut their lending rates after it lowered its benchmark lending rate for the first time since May 2018 and weeks after the removal of the legal caps on borrowing charges.

Welcome!

You're all set to enjoy unlimited Prime content.