Home ECONOMY Cost of credit expected to reduce marginally – KBC

Cost of credit expected to reduce marginally – KBC

by biasharadigest
CBK Governor Dr. Patrick Njoroge

KBC-survey-feedback-poster

The cost of credit is expected to marginally reduce after policymakers of the central bank on Monday lowered the benchmark lending rate by 25 basis points to 8.25 percent.

In reaching the decision, the policymakers noted that even though inflationary expectations are well anchored within the target range, the economy is operating below its potential level.

Central bank governor Dr. Patrick Njoroge who chairs the Monetary Policy Committee says there was room for further accommodative monetary policy to support economic activity hence policymakers’ decision to lower the central bank rate from 8.50 percent to 8.25 percent.

Dr. Njoroge says the central bank will closely monitor the impact of the lower benchmark lending rate.

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