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Interest cap complicates work of monetary team, says regulator

Central Bank Governor Patrick Njoroge. Even after adjusting the rates in favour of borrowers, he says the new law has complicated management of the country’s monetary policy. (PHOTO: FILE/ STANDARD)

Even after adjusting the rates in favour of borrowers, Central Bank Governor Patrick Njoroge says the new law has complicated management of the country’s monetary policy.

Njoroge reckons that it is now not possible to explicitly determine whether a reduction in rates will automatically result in increased lending as was the case in the old interest regime.

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