What do you believe is the single most important factor driving up the cost of living in Nigeria?

Despite the Central Bank of Kenya (CBK) cutting its key lending rate, banks are tightening their lending standards, deepening concerns about the availability of credit to businesses and households.

The tightening of lending standards by banks is likely to have a negative impact on the economy, as businesses and households will find it more difficult to access credit. This could lead to a further slowdown in economic growth and a rise in unemployment.

CBK’s Monetary Policy Committee (MPC) lowered the Central Bank Rate (CBR) to 12.00 per cent from 12.75 per cent, citing a decline in overall inflation and the need to support economic activity.

However, banks have been reluctant to pass on the rate cut to borrowers, citing concerns about the rising cost of funds and the deteriorating quality of loan portfolios.

Banks have tightened lending practices despite recent cuts in the Central Bank Rate (CBR) aimed at stimulating economic activity.

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