Kenyan Central Bank Holds Benchmark Lending Rate At 7.0%

KENYA’S central bank held its benchmark lending rate at 7.0% on Monday, the seventh ‘hold’ decision in a row, saying that a package of measures unveiled since last year had protected the economy from substantial decline.

Policymakers cut rates sharply at the onset of the coronavirus crisis in March last year, which was accompanied by other initiatives such as letting banks change the terms of loans for distressed borrowers.

The interventions have also “supported the most vulnerable citizens”, the central bank’s monetary policy committee said in a statement.

The government has said it expects economic growth to rebound this year after it slid to an estimated 0.6% last year.

The central bank stuck to the “strong growth” forecast on Monday, without commenting on new partial lockdown measures announced last Friday after a surge in infections and deaths from coronavirus.

Private sector credit grew by 9.7% in the year to February,