@BusinessDaily

CBK’s monetary policy meeting set for May 28

1 weeks ago, 16:48

By: Brian Ngugi

The Central Bank of Kenya (CBK) has set its next monetary policy meeting for May 28 at a time its key rate-setting committee is bracing for a proposed change in the rate cap law amid low inflation and possible rise in oil price.

At its last meeting on March 19 the Monetary Policy Committee (MPC), which meets every two months, cut the benchmark lending rate by 0.5 percentage point, leading to a drop in the cost of loans by a similar margin and hoping for relief to millions of borrowers.

This brought the rate to 9.5 per cent from 10 per cent, meaning banks are now required to charge borrowers a maximum of 13.5 per cent interest on loans.

The MPC said at the time that its decision was informed by the need to support economic activity in the changing business environment. Banks, however, said there has been little progress. CBK governor Patrick Njoroge, who chairs the MPC, then said a relatively stable forex market, a narrower current account deficit and a build-up of forex reserves that continue to cushion the economy from unforeseen shocks informed the decision to cut the base rate.

“The (MPC) concluded that there was scope for easing its monetary policy stance in order to support economic activity. Consequently, while noting the risk of perverse outcomes, the committee decided to reduce the Central Bank Rate (CBR) to 9.50 per cent from 10 per cent,” said Dr Njoroge.

The reduction in the benchmark rate came following release of data showing private sector credit grew 2.1 per cent in the 12 months to February this year, slightly lower than the 2.4 per cent in December last year.


Read More


Category: business corporate news opinion lifestyle markets economy

Suggested

1 hours ago, 20:16
@BusinessDaily - By: Nasibo Kabale
Fire breaks out at Mbagathi Hospital maternity wing

The wing was reportedly built at a cost of Sh200 million four years ago. ...

Category: business news markets lifestyle opinion
1 hours ago, 20:16
@BusinessDaily - By: Doreen Wainainah
Kenya’s appetite for hi-tech electronic gadgets growing

Industry experts say a lot of electronics are now affordable, leading to rising uptake. ...

Category: business corporate news opinion markets economy lifestyle
2 hours ago, 19:20
@AfricaNews - By: Africanews
South Africa kidnappers demand ransom in bitcoin to free teenager | Africanews

In December, kidnappers in Ukraine received a ransom worth more than $1 million in bitcoins for releasing their victim, an employee of a British cryptocurrency exchange. ...

Category: africa africa_business business news
14 hours ago, 06:38
@BusinessDaily - By: James Ngunjiri
Tycoon Kariuki to build Sh40bn Mozambique gas power plant

The 250MW plant will be one of the largest sources of electricity in the country ...

Category: business news economy markets topnews opinion lifestyle corporate
3 hours ago, 17:40
@CapitalFMNews - By: Correspondent
NBK, KRA sign agreement to support AGPO suppliers

NAIROBI, Kenya, May 23 - Business suppliers under the Access to Government Procurement Opportunities (AGPO) programme are set to receive a major boost from Kenya breaking news | Kenya news today | ...

Category: business finance
1 hours ago, 19:46
@BusinessDaily - By: Annie Njanja
Project links 896 public secondary schools to Internet

Among the counties benefiting from the voice project include Turkana, Samburu, West Pokot, Baringo, Kwale and Tana River. ...

Category: business corporate news

@BusinessDaily

CBK’s monetary policy meeting set for May 28

1 weeks ago, 16:48

By: Brian Ngugi

The Central Bank of Kenya (CBK) has set its next monetary policy meeting for May 28 at a time its key rate-setting committee is bracing for a proposed change in the rate cap law amid low inflation and possible rise in oil price.

At its last meeting on March 19 the Monetary Policy Committee (MPC), which meets every two months, cut the benchmark lending rate by 0.5 percentage point, leading to a drop in the cost of loans by a similar margin and hoping for relief to millions of borrowers.

This brought the rate to 9.5 per cent from 10 per cent, meaning banks are now required to charge borrowers a maximum of 13.5 per cent interest on loans.

The MPC said at the time that its decision was informed by the need to support economic activity in the changing business environment. Banks, however, said there has been little progress. CBK governor Patrick Njoroge, who chairs the MPC, then said a relatively stable forex market, a narrower current account deficit and a build-up of forex reserves that continue to cushion the economy from unforeseen shocks informed the decision to cut the base rate.

“The (MPC) concluded that there was scope for easing its monetary policy stance in order to support economic activity. Consequently, while noting the risk of perverse outcomes, the committee decided to reduce the Central Bank Rate (CBR) to 9.50 per cent from 10 per cent,” said Dr Njoroge.

The reduction in the benchmark rate came following release of data showing private sector credit grew 2.1 per cent in the 12 months to February this year, slightly lower than the 2.4 per cent in December last year.


Read More

Category: business corporate news opinion lifestyle markets economy

Suggested

1 hours ago, 20:16
@BusinessDaily - By: Nasibo Kabale
Fire breaks out at Mbagathi Hospital maternity wing

The wing was reportedly built at a cost of Sh200 million four years ago. ...

Category: business news markets lifestyle opinion
1 hours ago, 20:16
@BusinessDaily - By: Doreen Wainainah
Kenya’s appetite for hi-tech electronic gadgets growing

Industry experts say a lot of electronics are now affordable, leading to rising uptake. ...

Category: business corporate news opinion markets economy lifestyle
2 hours ago, 19:20
@AfricaNews - By: Africanews
South Africa kidnappers demand ransom in bitcoin to free teenager | Africanews

In December, kidnappers in Ukraine received a ransom worth more than $1 million in bitcoins for releasing their victim, an employee of a British cryptocurrency exchange. ...

Category: africa africa_business business news
14 hours ago, 06:38
@BusinessDaily - By: James Ngunjiri
Tycoon Kariuki to build Sh40bn Mozambique gas power plant

The 250MW plant will be one of the largest sources of electricity in the country ...

Category: business news economy markets topnews opinion lifestyle corporate
3 hours ago, 17:40
@CapitalFMNews - By: Correspondent
NBK, KRA sign agreement to support AGPO suppliers

NAIROBI, Kenya, May 23 - Business suppliers under the Access to Government Procurement Opportunities (AGPO) programme are set to receive a major boost from Kenya breaking news | Kenya news today | ...

Category: business finance
1 hours ago, 19:46
@BusinessDaily - By: Annie Njanja
Project links 896 public secondary schools to Internet

Among the counties benefiting from the voice project include Turkana, Samburu, West Pokot, Baringo, Kwale and Tana River. ...

Category: business corporate news
Our App