Hopes of lower lending rates as CBR cut
08 November 2012, 12:37
Nairobi - Capital News reports that the Monetary Policy Committee (MPC) has cut the Central Bank Rate (CBR) by 200 basis points to 11 percent citing easing inflation, a stabilizing exchange rate and improving economy.
Research Analysts at Genghis Capital are expecting the rate cut to buoy the market as the government seeks to loosen its monetary policy and spark hopes among consumers for lower lending rates.
However the committee warned that the impact of continued volatility in international oil prices, the spill-over effects of the slowdown in global economic growth on the domestic economy, and the balance of payments pressures stemming from a high current account deficit remain the main risks to the macroeconomic outlook.
- For more visit Capital News