How borrowers can survive higher interest rate cycles

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Interest rate futures can be used to hedge against the risk associated with changes in interest rates. PHOTO | SHUTTERSTOCK

The ever-changing interest rates slapped on credit by banks due to changes in the central bank reference rate set by the Monetary Policy Committee (MPC), continue to worry many Kenyans.

The committee reviews the Central Bank Rate (CBR), which informs how banks price their loans or mortgages from time to time.

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Note: The results are not exact but very close to the actual.