The Kenya Bankers Association (KBA) has urged the Central Bank of Kenya (CBK) to retain the base lending rate at 8.75 per cent during its August 11 Monetary Policy Committee (MPC) meeting. The KBA's Centre for Research on Financial Markets on Friday, August 7, said maintaining the current interest rate would support business lending, stabilise the shilling and keep inflation low. "With inflation anchored, as well as exchange rate stability, we view that maintaining the current stance of monetary policy in keeping the CBR unchanged at 8.75 per cent would be appropriate," KBA stated. Despite these challenges, the KBA said previous cuts to the lending rate have helped lower borrowing costs, noting that lower lending rates have encouraged more borrowing by businesses and individuals. "Sustained exchange rate stability, supported by resilient foreign exchange inflows and improved reserve buffers, continues to provide confidence in the current monetary policy stance," the report said.