By OTIATO GUGUYUMore by this AuthorThe Central Bank of Kenya (CBK) on Monday signalled commercial banks to cut their lending rates after it lowered its benchmark lending rate for the first time since May 2018 and weeks after the removal of the legal caps on borrowing charges. The lowering of the rate is expected to signal banks to cut lending rates to boost supply of credit and put money in hands of consumers to increase demand for goods and services in corporate Kenya that is cutting jobs on lower sales. LOAN RATEST-bill rates, which are influenced by the levels of government borrowing, look set to be the biggest determinant of loan rates, bankers say. Dr Njoroge remained optimistic that the Treasury will reduce borrowing, allowing money to flow into the private sector at lower rates to stimulate the economy. CBK says scrapping of the interest rate cap had removed one of the concerns the Central Bank had about cutting the benchmark.

Source: Daily Nation November 25, 2019 17:37 UTC