Qualified borrowers will now be able to borrow at even lower rates after the Central Bank of Kenya adjusted the central bank rate downwards by 50 basis points after the monetary policy committee meeting held earlier today. But analysts question whether the move will indeed spur credit sector growth as intended.
Victory for borrowers as Central Bank of Kenya cuts loan rates
This means that banks must now offer loans at a maximum interest rate of 14 per cent. CBK's decision has defied the expectations of many analysts who argued that there had been no significant change in the macro-economic environment since the last Monetary Policy Committee meeting to warrant a change in the Central Bank Rate (CBR) Reuters, from the poll of 12 economists last week, had predicted that CBK would hold the rate but cut it to 10 per cent at its November meeting. "With the state of affairs in the money market environment, all indicators