Rate cap gifts State cheap domestic cashTreasury building decorated for budget day. The interest at which they lend to each other, referred to as interbank rate, is at a three-year high. While the banks are out of liquid cash, the little they have they would rather give to the National Treasury. At the first try last week, the auction managed to raise Sh26.2 billion, translating into a performance rate of 72.2 per cent. That era ended with the rate cap.

Source: Standard Digital December 19, 2018 21:04 UTC