Base Lending Rate Cut Further Down To 8.25 From 8.5 percent

CBK Governor, Patrick Njoroge

Central Bank's Monetary Policy Committee (MPC) on Monday decided to further take the base lending rate down to 8.25 percent to 8.5 percent set last November.

According to the siting committee, the cut to the Central  Bank Rate (CBR) was attributed to better economic conditions, expected reduced inflation rate,increased private sector lending among more favorable conditions.

Although most stakeholders expected the CBR to remain at the same level, Dr Patrick Njoroge ,CBK Governor said ,the drop is expected to initiate more lending by the Commercial Banks.

Due to rate cap removal which happened during the last quarter of last year, commercial banks regulated by CBK will add their desired percentage to the set 8.25 to get the interest rate to be charged on loans offered.

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