Co-op Bank Group has announced a significant 2% reduction in its Base Lending Rate from 16.5% to 14.5% per annum in line with recent signals by Central Bank of Kenya.
This reduction takes effect immediately, the bank said today in a statement. “The effective lending rate will be the Base Lending Rate of 14.5% p.a. plus a margin of between 0% p.a. to 4% p.a. based on the individual customer’s credit profile,” it said.
Co-op Bank Group said reduction in lending rates is intended to stimulate credit growth to key sectors of the economy notably the MSMEs that are a critical engine to drive and sustain economic growth.
CBK cut its main interest rate for the fourth meeting in a row on 5th Feb, , hoping to stimulate lending and boost economic growth. The CBK Monetary Policy Committee cut the Central Bank Rate by 50 basis points to 10.75% on a day that it also reduced the Cash Reserve Ratio by 100 basis points to 3.25%. It said it had started on-site inspections of banks to ensure they pass on the benefits of lower funding costs to customers.
