The weighted average interbank lending rate rose to 10.7589 per cent on Tuesday from 10.5181 per cent on Monday.
The bank also used reverse repurchase (repo) agreements to inject Sh8 billion on Tuesday.
The shilling eased slightly, taking cue from central bank's Tuesday action of injecting local currency into the market. banks from holding dollars. At 10.57 a.m commercial banks quoted the shilling at 87.80/88.00 to the dollar, compared with Tuesday's close of 87.85/95.
"We have weakened slightly from yesterday after the CBK came in to pump in shillings in the market,"
"We predict that this level will hold quite strongly at 88. There is increased foreign participation at the NSE which is likely to give the shilling a boost," he said. Traders forecast the shilling to trade in the 87.50 to 88.00 range in coming days.
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