State austerity gifts borrowers cheaper loans

The removal of the rate cap is expected to lower restrictions on individual borrowers, though doubts still remain. [Courtesy]

The Central Bank of Kenya (CBK) has lowered the benchmark lending rate by 0.5 percentage points.

The Monetary Policy Committee (MPC) - CBK’s organ responsible for the formulation of monetary policy - yesterday lowered the Central Bank Rate (CBR) to 8.5 per cent, down from nine per cent. This has now set the stage for cheaper loans weeks after the interest rate cap was repealed.