Interbank rates tipped to fall on old notes mop-up

Central Bank of Kenya Governor Patrick Njoroge. PHOTO | DIANA NGILA | NMG

The elevated bank-to-bank lending rates are likely to be temporary as demonetisation has injected significant amounts of cash into the financial markets, Standard Investment Bank (SIB) said.

SIB said the interbank rates would likely fall considering that the Central Bank of Kenya (CBK) will probably ease off on the current mop-up of liquidity.

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