Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Central bank cuts key lending rate by 100 bps

07 May 2013, 17:56

Nairobi - Central bank of Kenya cut its benchmark lending rate by 100 basis points to 8.5 percent, resuming an easing path after pausing during the elections in March.

In a Reuters poll of 13 analysts eight had forecast the bank would leave rates on hold, citing an upside risk to inflation due to higher food prices. Five forecast a cut.

"They are saying the key now is growth and they are not worried that much about inflation," said Ignatius Chicha, head of markets at Citibank Kenya.

The Monetary Policy Committee said in a statement that confidence in the economy had increased after the vote passed off peacefully, sending the stock market higher, amid resilient hard currency inflows from Kenyans living abroad.

It said persistent worries about strains in the euro zone and a current account deficit of 11.4 percent of gross domestic product, were threats to the economy but said there was "policy space to encourage the private sector" to support growth.

Among positive economic factors, it cited projected growth in key regional trading partners, a stable exchange rate outlook due to capital inflows and good rains that support a low and stable food inflation over the short term.

- Reuters


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Shakila Alivitsa
Dating that one person that socie...

Works at a massage parlour. Works at Millionaires Club (that one on Baricho road) - you know the ones I am talking about. Read more...

Submitted by
Shakila Alivitsa
Submitted by
Shakila Alivitsa
What do men mean when they say th...

As much as men think they are the ones confused by relationships, they have a better idea of it than most women actually do. Read more...

Submitted by
Wilson Ochieng
Ruto urges African leaders to shu...

DP William Ruto has called on African nations to shun help from western forces, saying that they can solve their own problems. Read more...

Submitted by
Victor Tinto
Don't be corrupt like your elders...

Shun corruption at all costs, President Uhuru Kenyatta urges Kenyan youth. Read more...

Submitted by
Victor Tinto
Senators order PS to resign over ...

The Senate Health Committee has told Health PS Nicholas Muraguri to resign over the unaccounted for KES 5 billion. Read more...