Poll: Central Bank of Kenya to retain interest rates until November

The Central Bank of Kenya (CBK) will wait until November before trimming 0.5 per cent from its benchmark interest rate to help cushion the blow to lenders from a government ruling capping lending rates, a Reuters poll found on Friday.

Hoping to make credit available to more Kenyans, the government has ordered commercial banks to cap lending rates at four per cent above base rate.

But that has destabilised the banking sector and cut the margins of financial institutions.

Median forecasts from the poll of 12 economists, taken this week, suggest the CBK will hold its benchmark rate at 10.50 per cent on Tuesday, but cut to 10 per cent at its November meeting.