Kenyan central bank condemns interest rate cap legislation

Rules introduced in 2016 have restricted credit and limited policy

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The Central Bank of Kenya has said the interest rate cap imposed in 2016 has “infringed on” the independence of the central bank and “complicated” monetary policy.

“The interest rate capping regime has resulted in perverse monetary policy outcomes in which accommodative monetary policy stance has resulted in a deceleration in growth of credit to the private sector,” the central bank warns in a consultation paper published March 19.

The central bank notes only two years have passed since the

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