Kenya follows South Africa to announce surprise interest rate cuts; gives reasons why

Kenya follows South Africa to announce surprise interest rate cuts; gives reasons why

- Kenya has announced a reduction in its interest rates following a similar move by South Africa

- The East African country revealed that it decided to do so because its economy is currently operating below its capacity

- Kenya's monetary policy committee slashed down the country's interest rate from 8.5% to 8.25%

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Kenya has announced cuts in its interest rates cited well-anchored inflation expectation, following a similar move by South Africa.

According to the east African country, it also took the decision because its economy is currently operating below its potential.

Kenya’s monetary policy committee reduced its key rate from 8.5% to 8.25%, the governor, Patrick Njoroge, explained on Monday, January 27, 2020.

Kenya follows South Africa to announce surprise interest rate cuts; gives reasons why

Patrick Njoroge Governor of Central Bank, Kenya Source: bloomberg.com
Source: UGC

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YEN.com.gh understands that this is the second consecutive cut and the plan moves the rate to the lowest in more than eight years.

Per a report by Bloomberg.com, the cut is expected to have an impact on demand and output in Kenya.

According to Njoroge, credit in the private sector grew by 7.1% in 12 months and this could increase to 11.8% in 2020.

The Central Bank is convinced that economic growth could reach 6.2% in 2020, rising from 5.7% in 2019, when drought affected farm output.

In other news, Zimbabwe has turned its attention to the United Arab Emirates (UAE), following the decision of China and the Western nations to refuse to offer help.

Zimbabwe’s president, Emmerson Mnangagwa, determined to deal with the collapse of its economy, approached to UAE, hoping to sell a stake in its national oil company.

YEN.com.gh has learned that it is also ready to offer more of its gold for sale to the UAE.

According to Mnangagwa, UAE investors would have the opportunity to build solar plants in his country.

Per a report by fin24.com, UAE’s president, Sheikh Khalifa bin Zayed Al Nahyan, issued a decree a year ago in line with a plan to open an embassy in Zimbabwe.

READ ALSO: Boris Johnson welcomes Huawei with open arms into United Kingdom after USA rejects them

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Source: Yen.com.gh

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