Kenya’s apex bank retains benchmark rate at 10.5 percent amid falling inflation

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central bank kenya
Central Bank of Kenya

The Central Bank of Kenya (CBK) on Tuesday retained its benchmark lending rate at 10.5 percent amid declining inflation.

Kamau Thugge, governor of the CBK, who chaired the Monetary Policy Committee (MPC) meeting in the Kenyan capital of Nairobi, noted that non-food non-fuel inflation is expected to decline, indicative of easing underlying inflationary pressures.

“Overall inflation is expected to remain within the target range in the near term, supported by lower food prices with the improving supply of key food items, particularly maize, and the implementation of government measures to improve the supply of sugar through imports,” Thugge said in a statement.

He observed that the MPC met against a backdrop of continued global uncertainties, persistent inflationary pressures, an increase in international oil prices, a weak global growth outlook, geopolitical tensions, and measures taken by authorities around the world in response to these developments.

The apex bank added that the MPC also reviewed the outcomes of its previous decisions and measures implemented to mitigate the adverse economic impact and financial disruptions.

Thugge noted that the MPC will closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take further action as necessary.

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