Borrowers have been spared the burden of higher loan costs after the Central Bank of Kenya (CBK) decided to maintain its benchmark signal rate at 13.00 percent, following Wednesday’s Monetary Policy Committee (MPC) meeting.
The CBK announced that its current monetary policy stance has effectively mitigated the risk of inflation driven by excess money supply. However, banks have responded by reducing loan issuance to customers, and the level of non-performing loans has reached record highs, indicating a deepening debt crisis among borrowers.
In a statement, the CBK indicated that inflation is projected to decrease further, offering significant relief to financially strained Kenyans. “The MPC concluded that the current monetary policy stance will ensure that overall inflation remains stable around the mid-point of the target range in the near term while ensuring continued stability in the exchange rate. Therefore, the committee decided to retain the Central Bank Rate (CBR) at 13.00 percent,” stated CBK Governor and MPC Chairman Kamau Thugge.
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