Kenya's Central Bank Retains Its Benchmark Lending Rate At 10%

Kenya's Central bank retained its benchmark lending rate at 10%, in light of a sharp increase in February inflation to 9%, as well as continued depressed private sector credit growth and uncertainties in the global economy. Central bank governor, Patrick Njoroge said despite the rise in inflation was driven mainly by a surge in food prices; He expects it to ease before the end of this year as the long rains come in. The governor also added that a further evaluation of an interest capping law was required to assess its impact. The interest cap law, which came into effect in September last year, has seen banks in the country witnessing slimmer returns
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