CBK retains base lending rate at 7 per cent

CBK Governor Patrick Njoroge.

The Central Bank of Kenya (CBK) retained the base lending rate at seven per cent for nine consecutive months on the back of gradual economic recovery from the coronavirus pandemic.

In a statement on Wednesday, CBK’s Monetary Policy Committee (MPC) said policy initiatives introduced at the onset of the pandemic have had the intended effect on the economy.

“The MPC concluded that the current accommodative monetary policy stance remains appropriate, and therefore decided to retain the Central Bank Rate (CBR) at 7.00 per cent,” said the MPC in its statement.

CBK Governor Patrick Njoroge said the MPC will closely monitor the impact of the policy measures. The next meeting will be in March 2021.