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CBK retains benchmark lending rate at 7%

CBK retains benchmark lending rate at 7%

The Central Bank of Kenya (CBK) has retained the Central Bank Rate (CBR) at 7 percent on the account that the current accommodative monetary policy stance remains appropriate.

This is the seventh time CBK is maintaining the rate at 7 percent.

“The MPC will closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take additional measures as necessary,” said CBK in a statement.

The inflation rate across the country remained well-anchored, said CBK, adding that the month-to-month inflation stood at 5.8 percent in February compared to 5.7 percent in January.

The CBK maintained a strong economic growth in its meeting Monday but did not comment on how the coronavirus-imposed restrictions that were announced by President Uhuru Kenyatta on March 26 will affect the economy.

In the year to February, the private sector credit grew by 9.7 percent, reflecting the recovery in demand as the economy emerged from lockdown measures.

“The economy is expected to rebound strongly in 2021, supported by a recovery in the services sector particularly education and the wholesale and retail trade. This recovery will be anchored on the success of the containment measures and the vaccination program, including the measures announced on March 26.”

The CBK held its second Monetary Policy Committee (MPC) meeting on Monday.

It said measures which were taken previously have had their intended effect in covering the economy amidst disruptions occasioned by the COVID-19 pandemic.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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