Central Banks Monetary Policy Committee holds lending rates by commercial banks at 13 percent

Central Bank of Kenya. [Photo: FSD Kenya]

Central Banks Monetary Policy Committee has hold the lending rates by commercial banks at 13 percent.This comes as an out-turn of strong economic expansion and solidity in the macro-economic throughout the year.

CBK Governor Patrick Njoroge declared yesterday, "The Committee noted that inflation expectations continued well affixed within the marked range, but concluded that there was need to monitor the second-round inflationary effects arising from the VAT on petroleum products, and any perverse response to its previous decisions." He added that inflation was expected to increase due to the recent eight percent value added tax on petroleum products suggesting that food prices are expected to be low as a result of good weather.