Central Bank lowers rate by 8.5 per cent

The Central Bank of Kenya yesterday cut its key lending rate by 100 basis points to 8.50 from 9.50 per cent to support low inflation levels and buoyant market activity after the smooth general election. The Monetary Policy Committee said lowering the Central Bank Rate would also be beneficial to the exchange rate stability. In March it had retained the 9.5 per cent rate set in January. Despite the cut, the CBK said the commercial banks' average lending rates continued on their slow downward trend. Banks have been lending to consumers at an average of 18 per cent. The overall month-on-month...