Kenya's central bank cuts benchmark rate to spur economic activity, lending

NAIROBI, Aug. 12 (Xinhua) -- The Central Bank of Kenya (CBK) on Tuesday reduced its benchmark lending rate to 9.5 percent from 9.75 percent to stimulate economic activity and boost private-sector lending in the country.

CBK Governor Kamau Thugge, who chaired the Monetary Policy Committee (MPC) meeting, said there was room for further monetary easing to reinforce earlier measures aimed at expanding bank credit to the private sector and supporting growth, while keeping inflation expectations anchored and the exchange rate stable.