October 8, 2024
Central Bank of Kenya Slashes Interest Rate to Stimulate Growth
CBK Cuts Interest Rates Significantly to Stimulate Economic Growth and Encourage Investment.
The Central Bank of Kenya (CBK) has implemented a significant interest rate cut, the largest since the COVID-19 pandemic, as part of its ongoing efforts to stimulate economic growth. This move is a key aspect of the CBK’s monetary policy adjustments, which aim to lower borrowing costs and encourage investment in Kenya.
The decision comes amid a steady decline in inflation, which hit a low of 3.6% in September 2024, offering a more stable economic environment. The interest rate reduction is expected to provide much-needed relief to businesses and consumers by increasing market liquidity, fostering economic recovery, and boosting consumer spending.
By slashing the rate, the CBK aims to drive business investment and create a more favorable environment for borrowing, which will help Kenya’s economy continue its recovery trajectory following global and domestic economic pressures.