Kenya: Central Bank Cuts Rates



Publisher:
KENYA Citizen TV
Publication Date:
5 July 2012
Tags:
Kenya, Banking and Insurance

In what could amount to a reprieve for borrowers, the central bank has signalled banks to reduce their lending rates by cutting its own lender-of-last resort interest rate by 150 basis points to 16.5 percent. The bank's monetary policy committee meeting held Thursday afternoon took the decision after observing that the rate of inflation was steadily reducing, while the Kenya shilling to the U.S. dollar exchange rate was now relatively stable. But, as Denis Otieno reports, the bank also singled out the widening gap between the value of imports and exports, as well as weakening global economic growth as twin threats to Kenya's macro-economic stability going forward.




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