Kenya's central bank slashed its benchmark lending rate to 12.00% from 12.75% on Tuesday, in a move aimed at stimulating credit to the private sector, the bank's monetary policy committee (MPC) said in a statement.

The Central Bank of Kenya (CBK) has cut the benchmark interest rate by the largest margin since the start of Covid-19 economic hardships in March 2020, signalling relief for borrowers saddled with costly loans and reversing a slowdown in demand for credit.

The consensus among economists – including those at Kiwibank – is the Reserve Bank (RBNZ) will cut interest rates by 50bps to 4.75% tomorrow. Elliot Smith, Kiwibank’s chief customer officer business banking,

Kenya's central bank cut its benchmark lending rate to 12.00% on Tuesday, from 12.75%, the bank's monetary policy committee (MPC) said, adding that the move was aimed at boosting credit to the private sector.

Uganda’s central bank cut its benchmark policy rate by 0.25 percent to 9.75 percent on Monday in a further sign of subdued inflationary pressures and the spillover effects from softening of monetary policy actions undertaken by leading central banks.

Kenya’s central bank delivered its biggest interest-rate cut since the pandemic to help boost economic growth, after inflation eased to a 12-year low.