[Photo: Felix Kavii/standard]The International Monetary Fund (IMF) wants the law capping interest rates abolished to stimulate growth. CBK, however, denies suppressed loan approvals are linked to the interest rate capping regime. We need to look at the data carefully,” CBK Governor Patrick Njoroge was quoted as saying by Bloomberg about interest rate capping. IMF said interest rate capping complicates monetary policy and adversely affects banking sector profitability, especially for small banks. “These frustrations are centred around the cost of credit and the applicable interest rates on their hard-earned deposits.

Source: Standard Digital January 26, 2017 20:44 UTC