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Thugge: Rate hike to shore up shilling, end dollar hoarding

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CBK Governor Kamau Thugge. [Elvis Ogina, Standard]

The Central Bank of Kenya (CBK) says Tuesday's unexpected increase in the key lending rate will help prevent dollar hoarding as the shilling edges towards the 155 mark against the greenback.

The banking regulator raised its benchmark lending rate by a significant 200 basis points to 12.50 per cent from the previous 10.50 per cent.

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