The Central Bank of Kenya’s Monetary Policy Committee will hold its next rate-setting meeting on June 30, it said on Tuesday.
Policymakers kept benchmark lending rate at 7.0 per cent unchanged at their last meeting on May 27.
The committee has cut its main interest rate by a total of 125 basis points over two meetings to support the economy since its first case of the new coronavirus was reported in mid-March.
“The policy measures adopted in March and April were having the intended effect on the economy, and are still being transmitted,” the committee said in a statement.
Banks remain stable, it said, and fiscal stimulus introduced by the government would kick in strongly in the financial year starting in July.
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At its March meeting the committee reduced the amount of cash that lenders are required to set aside, unlocking Sh35.2 billion for lending.
“As at May, 82.6 per cent of the funds (or 29.1 billion) has been channeled to support lending, especially to the tourism, transport and communication, real estate, trade and agriculture sectors,” the committee said.