Thugge’s first MPC meeting pushes borrowing cost to all-time high

Newly appointed Central Bank of Kenya (CBK) Governor, Dr. Kamau Thugge chaired his first Monetary Policy Committee (MPC) meeting Monday, reviewing the benchmark lending rate to an all-time high in seven years.

The MPC revised the rate up by 100 basis points to a double-digit of 10.5 percent.

It implies high borrowing costs among Kenyans, at a time when the government is shifting to domestic borrowing.

According to MPC, the push was attributed to a hike in inflation and a gloomy outlook on inflation in the coming months.

An elevated global risk also informed the decision.

Dr. Thugge, however, said the country has enough dollars to cover imports for 4 months at Ksh.1 trillion (7.3 billion USD).

Lawrence Baraza

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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