Capital Markets

Analysts expect base lending rate to remain at 10pc

The Central Bank of Kenya building in Nairobi. FILE PHOTO | NMG
The Central Bank of Kenya building in Nairobi. FILE PHOTO | NMG 

The Central Bank of Kenya (CBK) advisory committee is likely to retain the base lending rate unchanged at 10 per cent when it meets on Monday, analysts have projected.

The meeting is being held on the backdrop of sentiments by the CBK governor this week giving the clearest signal that the regulator intends to push for a repeal of the year-old law capping interest rates because of the negative effect it has had on the economy.

CBK governor Patrick Njoroge, speaking on Wednesday, however, warned that commercial banks would have to show discipline in the pricing of loans so as not to overcharge borrowers.

Analysts forecast the rate to remain steady as the shilling shows signs of resilience, with the country’s foreign reserves rising gradually.