Central Bank Of Kenya Governor Dr Patrick has said that a proposal by Kenyan MPs to cap commercial banks lending rates at 4% points above CBK’s CBR would be extremely harmful to the economy.
He was speaking during the bimonthly press conference to review macroeconomic and banking sector developments in the last two months. He said that lending rates still needed to come down and that Kenya’s current account deficit was expected to drop by 8% of GDP.
In the last Monetary Policy Meeting, the regulator held its benchmark Lending rate arguing that the current monetary policy now in place had helped moderate inflation expectations. Read; CBK retains CBR at 11.5% For the Sixth Time In a Row
Dr Njoroge also noted that incase of a Brexit by England from the EU, it would be would be a big blow to Kenya’s economy.He added that about seven banks control over 80% of Kenya’s population cash. The governor also encouraged shareholders of Banks to raise questions on Non Performing Loans’ during AGMs.
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