DTB reduces interest rates by a further 0.55%
Lender says it remains committed to supporting businesses and individuals by providing competitive financial solutions for faster growth and success
Diamond Trust Bank (DTB) has announced a further reduction in our lending rates by up to 0.55 per cent per annum, effective June 1 for all loans.
“This follows previous adjustments, bringing the total reduction to up to 2.51 per since January 1 this year. The final lending rate will be determined by customer-specific profiles under our Risk-Based Credit Pricing Model, applicable to Kenya Shilling denominated facilities only,” DTB said in a statement
DTB added it remains committed to supporting businesses and individuals by providing competitive financial solutions for faster growth and success.
The reduction follows a push by the Central Bank of Kenya for lenders to lower their lending rates on the bank of consistent reduction of the Central Bank Rate (CBR), which currently stands at 10 per cent following the latest review on April 8, in order to make the cost of credit for the private sector more affordable to spur economic growth.
While most banks have compiled, five have not done so while a total of 15 are still offering loans at rates above the CBR despite threats by Central Bank Governor Dr Kamau Thugge to take action.
Analysts have ever argued that aside from the CBR, the cost of credit is also determined other market factors such as the cost of funds.
The Monetary Policy Committee (MPC) is set to meet next on Tuesday, June 10 with experts expecting a further reduction to cushion Kenyans from US President Donald Trump’s imposition of a 10 per cent tariff on Kenyan exports.
”We continue to expect the Central Bank of Kenya to cut its policy rate at consecutive meetings to an 8.5 per cent terminal rate” from 10 per cent, Goldman Sachs Group Inc.’s Andrew Matheny and Mambuna Njie wrote in a recent client note.
