MPC maintains Bank Lending Base Rate at 7 per cent

CBK Governor Dr Patrick Njoroge
CBK Governor, Dr. Patrick Njoroge 

The Monetary Policy Committee (MPC) met Wednesday 27th May, 2020 and resolved to keep the Central Bank Rate (CBR) at 7 per cent for the second time.

This was as a result of the committee noticing that all the necessary measures taken in the March MPC are still effective and productive.

Although the COVID-19 pandemic has placed the world economy on its knees, Kenya noticed a lot of positive impact amidst the pandemic.

The favourable weather conditions are helping in improving food productivity, which is good for the economy.

Restructured loan by the commercial banks are greatly helping the borrowers affected by the Coronavirus pandemic to cope easily.

However, there was an increase in non performing loans, which is mostly as a result of the negative effects of the pandemic.

The Central Bank of Kenya (CBK) is therefore closely monitoring the changes to see when and where to make rectification in the next MPC meeting.

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