Banking -The Kenya Bankers Association (KBA) has called on the Central Bank to lower its base lending rate.
This call happening amidst easing inflationary pressure that could plunge the country back to the tough times
In a research note titled; Economic Fundamentals Support a Stronger Policy Rate Cut published on October 3, the bankers noted that inflation remains on a declining trend and below the midpoint of the target range, with food and fuel prices continuing to drop as well.
The bankers also noted the volume of loans to advanced private sector businesses remains low which the Association attributed to high interest rates and elevated non-performing loans, which it pointed out threatens to slow economic growth.
The bankers’ umbrella body also raised concern over global economic uncertainty which they claimed was on the rise mainly driven by geo-economic fragmentation, impacting investments and market volatility.
