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Economy

Central Bank retains benchmark lending rate at 10pc

Central Bank of Kenya (CBK) Governor Patrick Njoroge. PHOTO/FILE
Central Bank of Kenya (CBK) Governor Patrick Njoroge. PHOTO/FILE 

The Central Bank of Kenya has retained the benchmark lending rate at 10 per cent amid a marginal rise in inflation and a relatively stable forex market.

CBK noted that the inflation rate, which increased to 6.5 per cent in October from 6.3 per cent the previous month was within the government target range.

In a statement, CBK Governor Patrick Njoroge said the foreign exchange market had been "relatively stable despite the volatility in the global financial markets following the US elections and the seasonal increase in demand for foreign exchange by corporates to finance dividend payments."

Dr Njoroge pointed out that banking liquidity had stabilised since August adding that the continued interest by foreign banks to enter the foreign market indicated confidence in the banking market.

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