MPC likely to retain CBR at 10 percent

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Economists project that the central bank is likely to retain the base lending rate at 10 percent when the Monetary Policy Committee meets this afternoon. According to analysts at Cytonn Investments, the Central Bank will do this in order to support economic growth, in light of a slowdown in first quarter GDP growth at 4.7 percent up from 5.9 percent in a corresponding quarter of last year. Analysts also feel that a drop in the rate of inflation to 9.21 percent has vindicated the central bank that has previously argued inflation was predominantly driven by food prices.

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