Kenya central bank cuts main lending rate to 9.75%

NAIROBI: Kenya’s central bank cut its benchmark lending rate to 9.75% on Tuesday from 10.00% previously, the bank’s Monetary Policy Committee said.

It was the sixth monetary policy meeting in a row that the Central Bank of Kenya has lowered the rate.

“There was scope for a further easing of the monetary policy stance to augment the previous policy actions aimed at stimulating lending by banks to the private sector and supporting economic activity,” the bank said in a statement.

Economists polled by Reuters had been divided on what the central bank’s decision would be. Out of seven forecasts three were for a cut, three for no change in the policy rate and one for a hike.