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MPC sets meeting for end of January

Patrick Njoroge
Central Bank of Kenya Governor Patrick Njoroge. FILE PHOTO | NMG 

The Central Bank of Kenya (CBK) says it will hold its next Monetary Policy Committee (MPC) meeting on Monday, January 28, 2019 to signal the direction of price of loans in the New Year.

The regulator made the announcement on its website days after the MPC held benchmark lending rate at nine percent, a rate that has been in place since July 2018.

In the November 27 decision, (Central Bank of Kenya) CBK governor Patrick Njoroge said the base lending rate was maintained to reflect the fact that there was reduced inflationary pressures and that the economy was operating “close to its potential.”

The announcement means that commercial loans will continue being priced at a maximum of 13 percent, being four percentage points above the Central Bank Rate (CBR) as is required in the Banking Amendment Act 2016. November inflation rose marginally to 5.58 percent from 5.53 percent in the previous month but CBK expects the number to remain within the desired range of between 2.5 percent and 7.5 percent.