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Shilling drops against dollar on rate-cut bets

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The shilling inched lower yesterday as importers bought dollars in anticipation of an interest rate cut later in the week. Commercial banks quoted the shilling at 86.50/70 to the dollar, slightly down from Tuesday's close of 86.40/60. "Customers are being cautious ahead of tomorrow's rate decision," said John Muli, a trader at African Banking Corporation. The consensus from a Reuters poll of 11 analysts and traders is for a cut of 100 basis points to 10 percent as the central bank seeks to drive economic growth by lowering costs of credit...

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