CBK maintains lending rates at 7 %

The Central Bank of Kenya has held the benchmark lending rate unchanged at seven percent for the 11th time.

In a report after the Monetary Policy Committee Meeting , CBK indicated that the retention was key to sustaining the progressive rebound of Kenya’s economy.

A survey  conducted earlier in the month which covers market perceptions, CEOs and hotels has revealed the highest level of optimism about economic growth prospects since March this year.

The CBK attributed the slight growth of the economy since march to the the lifting of the curfew, reduced COVID-19 infection numbers and continued government infrastructure spending .

The global economy continues to strengthen in 2021, largely supported by the ongoing
deployment of vaccines, relaxation of COVID-19 containment measures and travel restrictions,
and strong policy measures.

However, the pace of recovery of the global economy remains uneven across countries, and is dependent on the distribution of vaccines across regions and evolution of the pandemic following a resurgence of new variants.

Additionally, inflation in some major economies and emerging markets has risen sharply, mainly due to increases in global oil prices, supply chain bottlenecks, and weather-related factors.

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