The Monetary Policy Committee (MPC), which met on Tuesday, has lowered the Central Bank Rate (CBR) by 25 basis points to 9.75 percent from 10 percent.
Central Bank of Kenya (CBK) Governor Dr.
Kamau Thugge, who is also the chairman of the MPC, said that the average lending rates in the domestic market have continued to decline, while private sector credit growth has recovered modestly. "The Committee concluded that there was scope for a further easing of the monetary policy stance to augment the previous policy actions aimed at stimulating lending by banks to the private sector and supporting economic activity, while ensuring inflationary expectations remain firmly anchored and the exchange rate remains stable," said Dr.
Thugge.
