NAIROBI, May 7 (Reuters) - Kenya's central bank cut its benchmark lending rate by 100 basis points to 8.5 percent, resuming an easing path after pausing during the elections in March.
Following are analyst and trader reactions:
IGNATIUS CHICHA, HEAD OF MARKETS CITIBANK
'It's more than the 50 basis points I had anticipated. This shows there was enough room for them to cut the rate and they're pushing on the mantle to commercial banks and the private sector. They are saying the key now is growth and they are not worried that much about inflation.
'The way they see it is that there are some good (dollar)flows coming into the country and their reserve level is strong to defend the currency. If there is any pressure on the shilling we may see them come in to sell dollars and mop up more liquidity using repos.'
(Reporting by Kevin Mwanza; Editing by James Macharia) Keywords: KENYA RATES/
(email@example.com; Tel: +254 20 222 4717; Reuters Messaging: firstname.lastname@example.org)
Copyright Thomson Reuters 2013. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.