CBK cuts main loan rate, lowers growth estimate to 12-year low

The Central Bank of Kenya (CBK) has cut its benchmark rate by the largest margin in three and half years and lowered the amount of deposits banks must hold with the regulator in efforts to boost flow of cheap loan in an economy plagued by the coronavirus outbreak.

The benchmark rate was on Monday cut by 100 basis points or one percentage point to 7.25 percent, a pointer of policy bias towards cheaper loans in an environment where the government is not controlling cost of credit.