Cost Of Borrowing: CBK monetary policy committee retained the benchmark lending rate at 7%
The central bank of Kenya monetary policy committee retained the benchmark lending rate at 7% citing leading indicators for the economy point to recovery particularly in the fourth quarter of 2020. The committee said policy measures implemented since march 2020 were having the intended effect on the economy. the recovery is supported largely by strong performance in the agriculture and construction sectors, resilient exports, and continued recovery in manufacturing and services. the inflation rate is also expected to remain within the target range in the near term, supported by lower food prices and muted demand pressures. recently introduced tax measures are expected to have a modest impact on overall inflation.