[2008-08-12]  Interest rate maintained to ease cost of borrowing
The Central Bank of Kenya move to stabilise interest rates following weeks of uncertainty stirred financial markets from last Thursday with interbank lending and Treasury bill rates going down.

Last Wednesday, the Monetary Policy Committee retained the Central Bank Rate (CBR) at nine per cent, validating the Central Bank’s move in recent treasury debt auctions to take money at higher rates despite evident revenue gaps.

“Banks that increased their lending rates may have acted too soon. Liquidity has eased after refunds from the Safaricom IPO starting coming through,” said Joshua Kagia, head of Treasury at Consolidated Bank, said.

Source: Businessdaily