Banks raise the cost of loans on CBK jumbo rate hike
Top commercial banks, NCBA Group, Standard Chartered, Housing Finance, have started increasing lending rates by up to 1.1 percentage points after the Central Bank of Kenya (CBK) raised its benchmark interest rate.
The higher cost of loans, however, risks locking out businesses from accessing the credit they need for expansion and in turn, limit their ability to create more jobs.
“Effective November 11, 2022, NCBA Bank’s base lending rate for Kenya shilling denominated credit facilities will increase from 8.9 percent to 10 percent per annum,” the NCBA Bank notice read.
The CBK’s Monetary Policy Committee (MPC) increased the benchmark rate saying the rising inflation and global risks and their impact on the domestic economy called for tightening of the monetary policy.
The credit base in the informal sector may continue to decrease, as we see banks deepen investment in government securities and restrict lending to high-quality customers, this may prove a challenge to President WSR's administration. Traders will now resolve to other forms of lending
https://www.businessdailyafrica.com/bd/markets/capital-markets/banks-raise-cost-of-loans-on-cbk-jumbo-rate-hike-3987570
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