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CBK Keeps Rates Unchanged Amid Resurgence of COVID-19 Infections

Digital lenders have up to six months to acquire new licenses from Central Bank of Kenya before they are allowed to operate in the country

Dr Patrick Njoroge, CBK Governor.

The Monetary Policy Committee (MPC) of Kenya’s Central Bank kept interest rates unchanged on Thursday as expected amid concerns over a surge in Covid-19 infections.

According to the regulator’s November 2020 MPC Private Sector Market Perception Survey, respondents attributed the improvement to continued normalization of economic conditions with the lifting of COVID-19 restrictions, strong agricultural production, and Government focus on infrastructural projects.

The Committee said policy measures that have been implemented since March were having the intended effect on the economy. 

“The MPC concluded that the current accommodative monetary policy stance remains appropriate, and therefore decided to retain the Central Bank Rate (CBR) at 7.00 percent.”

Dr. Njoroge also disclosed that “Additional measures to strengthen the fiscal performance are under consideration.”

The Committee will meet again in January 2021, but it ‘remains ready to re-convene earlier if necessary’.

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