Local banks have had to choose either CBR or Kesonia, or both rates, as the benchmark for pricing loans to customers.
By
Kepha Muiruri
Business Reporter
Nation Media Group
The Central Bank Rate (CBR) and a new benchmark rate for pricing loans have converged at 8.75 percent, creating a single industry stand for assessing the cost of credit.
For Kenya’s banking sector, the data in CRB so far supports a cautiously positive assessment.
Analysts at the AIB-AXYs Africa say they expect a soft CBR increase, pushing the rate up from 8.75 to nine percent.
April inflation rose at the quickest pace in seven years to 5.6 percent from 4.4 percent as the global oil price shock hit home.
Major central banks around the world, including the US Federal Reserve, have adopted a similar stance, favouring the wait-and-see…
Banks’ Maximum Lending Rate Drops to 33.16% as CBN Sustains Monetary Policy, Costs of Borrowing Remain High
Analysts reckon that banks have been able to attain bigger lending margins or spreads from an easier release of expensive…
