Inter-bank lending rate at 18-month high on tight liquidity

GRAPHIC | STANSLAUS MANTHI | NMG

The daily average borrowings by banks from their peers jumped 23.5 percent in February compared to a month earlier, pushing their lending rates to an 18-month high.

Data from the Central Bank of Kenya (CBK) show that inter-bank lending rose to a daily average of Sh23 billion in February from Sh17.8 billion in January amid fears the rising costs of accessing the funds could filter through to customer loans.

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