MPC Retains CBR at 9 Percent


The Monetary Policy Committee (MPC) on Monday meeting and for the fourth time retained the Central Bank Rate (CBR) at 9 percent since May last year.

Commercial banks regulated by the Central Bank of Kenya (CBK) are allowed to charge a maximum of 4 percent above CBR. This means the highest interest rate a bank can charge on a loan issued to a customer is 13percent.

The committee came to the conclusion after finding out that ;

  • Inflation remained stable month on month during the last quarter of 2018
  • Foreign exchange market remained stable 
  • Private sector credit grew during the whole of last 
  • Banking sector remained stable and resilient 
  • Economy picked up strongly in 2018

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