Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The MPC says inflation remained within the medium target set by the government while the exchange rate was stable/FILE

Kenya

CBK retains lending rate at 8pc

The MPC says inflation remained within the medium target set by the government while the exchange rate was stable/FILE

The MPC says inflation remained within the medium target set by the government while the exchange rate was stable/FILE

NAIROBI, Kenya, Jul 10 – The Central Bank of Kenya’s Monetary Policy Committee (MPC) has retained the base lending rate at 8.5 percent.

The MPC says inflation remained within the medium target set by the government while the exchange rate was stable.

Overall, month-on-month inflation increased from 4.05 percent in May 2013 to 4.9 percent in June 2013 reflecting an increase in food prices coupled with the impact of the base effect attributed to the decline in the consumer price index in mid 2012.

The committee also noted that the government’s domestic borrowing target of Sh106.47 billion for 2013/2014 was significantly below Sh165.7 billion for the 2012/2013 year.

“The borrowing coupled with the planned issuance of a sovereign bond during the fiscal year should ensure that domestic borrowing does not exert pressure on government securities,” the committee noted.

Commercial banks have continued to announce reductions in their base lending rates.

The committee noted that number of loan applications increased by 36 percent from 65,113 in April 2013 to 88,973 in May 2013.

The economy registered a strong growth of 5.2 percent in the first quarter of 2013 and confidence in the economy has been sustained.

This, according to the committee, reflects the current macroeconomic stability characterized by low and stable inflation rates and a strong performance of the agriculture which grew at 8.3 percent compared with 2.1 percent in the first quarter of 2012.

However risks to the macro-economic outlook emanated from high current account deficit and the current instability in the Middle East and North Africa.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...