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.