Kenya: MPC Retains the 9 Percent Credit Lending Rate in Kenya

23 September 2019

The Central Bank (CBK) lending rate of 9% has been retained as announced in a meeting held on September 23, 2019 by the Monetary Policy Committee ((MPC).

MPC reported that month-on-month overall inflation remained within the target in July and August 2019 as it fell to 5 percent in August from 6.3 percent in July. Also, the foreign exchange market remained relatively stable, supported by narrowing of the current account deficit to 4.2 percent of GDP in the 12 months to July 2019 from 5.5 percent in July 2018.

Furthermore, the committee noted sustained optimism that economic growth will remain strong in 2019 due to the implementation of the Big 4 agenda projects, improved weather conditions, and a stable macroeconomic environment.

On top of that, there has been strong growth in the leading indicators of economic growth such as electricity, cement consumption, tourist arrivals, consumption-based taxes, and imports of intermediate goods.

Moreover, global economic slowdown largely due to uncertainties with escalating trade tensions between China and USA couple with shifting expectations on the nature and timing of Brexit has led to increased volatility in the global financial markets.

eflects strong diaspora remittances, resilient exports for horticulture and manufactured goods, higher receipts from tourism, lower imports of food and SGR related equipment. Considering the above observations and trends, MPC, therefore, decided to retain the CBR at 9.00 percent.

See What Everyone is Watching

More From: CIO

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.