Banks revise lending rates as Ksh starts to depreciate
2 min read
Banks raise lending rates as Ksh depreciates against major currencies citing ongoing changes in the microeconomic environment
Banks raise lending rates as Ksh depreciates against major currencies citing ongoing changes in the microeconomic environment.
Macroeconomic activity is largely defined by market trends especially inflation which is influenced by the performance of local currency.
Other factors that can inform the macro environment include; consumer spending as well as monetary and fiscal policies.
The Ksh between the months of February and March appreciated against the world’s major denominations to become the best-performing currency globally.
In April, the Shilling became volatile and is now exchanging at 131 units against the Dollar according to the Central Bank of Kenya (CBK).
While there are fears that the Ksh could slide to the record 160 units against the greenbuck experienced in February and March, the local currency has been trading between 130 and 133 against the Dollar for the month of April.
Shock as police leads gang in shootout against colleague officers
Ruto announces changes for all new buildings across the country
Jimi Wanjigi teargassed by the police while in a church procession
Raila spotted watching Mashemeji Derby after missing the burial of Francis Ogolla
Despite the fears by local banks, CBK on April 3, retained the Central Bank Rate (CBR) at 13 per cent for April and May 2024 following its Monetary Policy Committee (MPC) meeting.
“The MPC noted that overall inflation is expected to continue declining in the near term, supported by lower food and fuel prices, and pass-through effects of the recent exchange rate appreciation,” CBK banked on the strength of the Shilling while maintaining the CBR.
One of the Kenyan top banks revealed that it would increase its lending rate from 16.5 per cent per annum to 17.5 per cent per annum.
Additionally, the United States Dollar lending rate was increased from 11 per cent to 11.75 per cent per annum.
The raising of the lending rates will not affect fixed-rate loans but clients with variable-rate loans will be impacted.
Also read,
Kenya Air Forces dies in a road accident
Government issues new directive over waste collection
UoN students threaten to go on strike within 48 hours
Ruto CS denies forming a team to investigate a chopper crash involving General Ogolla
Six people dead after a road accident in Narok
How Charlene Ruto defied his father’s order to attend the burial of Gen Francis Ogolla
Follow us
