On May 31, 2022, the Central Bank of Kenya (CBK) made a significant move by raising its benchmark interest rate by 50 basis points, marking the first increase in seven years.
This decision aims to combat inflation and stabilize the economy. The new lending rate stands at 7.5%, a move that is expected to impact various sectors, including the housing market and small businesses.
The CBK's move is a response to the rising inflation rate, which has been a concern for the country's economic growth. By increasing the lending rate, the CBK aims to reduce borrowing and subsequently curb inflation.
