Interest rates up again
02 December 2011, 08:44
Nairobi - Capital News reports that the Central Bank of Kenya’s(CBK) Monetary Policy Committee (MPC) on Thursday yet again defied market expectation by raising its benchmark interest rate by 150 basis points to 18 percent from the 16.5 percent set on November 1.
MPC on their part said that when they realized that inflation continued to increase in November it was necessary to enhance monetary policy actions, including the Cash Reserve Ratio raised in the last MPC meeting which were still transmitting through the market.
In a media statement, MPC Chairman Njuguna Ndung’u said that the Committee decided to revise upwards the Central Bank Rate by 150 basis points from 16.5 percent to 18.0 percent.