This archive report was first published on 25 November 2019.
The Central Bank of Kenya's Monetary Policy Committee (MPC) is scheduled to meet on Monday, November 25, 2019, in a move that is expected to see a cut in the Central Bank Rate (CBR).
This will be the first meeting since the repeal of the law capping interest rates, aimed at increasing credit access in the private sector.
At its last meeting on September 23, 2019, the MPC retained the CBR at 9 per cent, citing that the economy was operating at close to its potential with inflation remaining within the target range.
According to the CBK's website, the CBR is the basis for all monetary policy operations, enhancing clarity and certainty in monetary policy implementation.
Several analysts expect the MPC to cut the CBR due to factors such as the moderate growth in GDP witnessed in the first half of 2019 and the ongoing government fiscal consolidation plans.
Lowering the central bank rate would provide a moderate stimulus to the economy, encourage banks to lend to the private sector, and increase credit access to SMEs.
As the MPC reviews and announces the CBR every two months, a cut in the rate is likely to provide incentives for economic growth.
