CBR Retained At 9 Percent

MPC Press Release July 24th 2019

Monetary Policy Committee (MPC) retained the Central Bank Rate (CBR) at 9Percent during the July 24th Meeting.

This means  commercial banks regulated by Central Bank of Kenya (CBK) will charge a maximum of 4 percent  above CBR on loans issued. The maximum interest rate a  bank can charge therefore is 13 percent.

The MPC team chaired by the CBK governor Dr Patrick Njoroge had the following reasons for the decision on retained CBR;

  • Overall inflation remained relatively stable and within the target range.
  • The foreign exchange market has remained relatively  stable 
  • Private sector credit grew 
  • The banking sector remained stable and resilient .
  • The economy remained strong 
  • Previous MPC survey report shows inflation expectations in control 
  • The committee noted the withdrawal of the older kes1000 notes (demonetisation) and the close monitoring by CBK will ensure that the process is not disruptive to the economy. 

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