StanChart sees Kenya’s growth boosted by lower interest rates
SEE ALSO :Brothers seek part in Sh2.2b debt case“The key test for Kenya in the years ahead will be the strength of its fiscal consolidation intent. Encouragingly, authorities have unveiled plans for further cuts to discretionary spending,” she said. Eva Otieno, Africa Strategist for Standard Chartered, added that with the ongoing fiscal consolidation Central Bank of Kenya (CBK) might have to do some “heavy lifting” in supporting economic growth. “The (benchmark rate) cut was a measured step by CBK to be able to stimulate economic growth,” she said. The CBK’s Monetary Policy Committee cut the lending rate from 8.50 per cent to 8.25 per cent. The slashing and the interest cap removal are expected to see the credit to the private sector grow to 11.8 per cent this year from 7.1 per cent recorded in 2019.
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