Kenyan apex bank cuts lending rate to boost private sector credit
Nairobi: The Central Bank of Kenya (CBK) on Tuesday reduced its benchmark lending rate to 10 percent from 10.75 percent to boost lending to the private sector.
Kamau Thugge, governor of the CBK who chaired the Monetary Policy Committee (MPC) meeting in Nairobi, the capital of Kenya, said that there was scope for further easing of the monetary policy stance to stimulate lending by banks to the private sector and support economic activity while ensuring exchange rate stability.
"Average lending rates have been declining gradually since December 2024, but private sector credit growth remains subdued," Thugge said in a statement released in Nairobi.
The CBK governor added that the MPC met against a backdrop of elevated uncertainties to the global outlook for growth, lower but sticky inflation in advanced economies, heightened trade tensions, and persistent geopolitical tensions.
According to the central bank, overall inflation is expected to remain below the mid-point of the target range in the near term, supported by low core inflation, lower food inflation, stable energy price inflation, and continued exchange rate stability.
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