NAIROBI, June 10 (Xinhua) -- The Central Bank of Kenya (CBK) on Tuesday reduced its benchmark lending rate to 9.75 percent from 10 percent to stimulate lending to the private sector.
CBK Governor Kamau Thugge, who chaired the Monetary Policy Committee (MPC) meeting in Nairobi, the capital of Kenya, said that there was scope for a further easing of the monetary policy stance to augment the previous policy actions aimed at catalyzing growth in commercial bank lending to the private sector and supporting economic activity, while ensuring inflationary expectations remain firmly anchored.
"Average lending rates in the domestic market have continued to decline, while private sector credit growth has recovered modestly," Thugge said in a statement released in Nairobi.
The MPC also said that central banks in the major countries have kept cutting their interest rates.
Thugge said that overall inflation was expected to remain below the 5.0-percent mid-point target range in the near term.
The apex bank revealed that it will closely monitor the impact of the policy decision as well as developments in the global and domestic economy and stands ready to take further action as necessary in line with its mandate.
