Tuesday, July 31, 2018

Cheap Loans As MPC Further Lowers CBR To 9 Percent

    July 31, 2018   No comments

MPC Press Release

Monetary Policy Team chaired  by CBK Governor,Dr. Patrick Njoroge on Monday 30th July, came to a favourable conclusion to borrowers by taking the CBR further down from 9.5% to 9%.

Monetary Policy Committee (MPC) had been taking the CBR down since the rate capping law came into force.CBR was 10.5 % in end 2016 when rate cap came in. MPC dropped it to 10% ,then 9.5% and now down to  9% in July 2018.

Despite forces to scrap rate capping, MPC placed CBR at 9% making loans cheap .Banks will now be forced to charge a maximum of 4% above CBR thus 13% will be the new maximum for all CBK regulated lenders.

Njoroge and the team attributed the move as a result of increased optimism on growth ,strong pickup in economic activity, favourable weather among other favourable factors.

Mwabaya Katana

About Mwabaya Katana

Mwabaya is an experienced and talented finance content creator based in Kenya. He is the Founder of Loans Kenya Blog.

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