The Central Bank of Kenya (CBK) has decided to keep its benchmark lending rate at 10.5 percent amid declining inflation.
CBK Governor Kamau Thugge, who chaired the Monetary Policy Committee (MPC) meeting in Nairobi, the capital of Kenya, noted that inflation is already within the target band and is expected to decline further as food inflation is expected to come down.
“The committee 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,” Thugge said in a statement issued Wednesday evening.
He said that overall inflation in Kenya declined to 7.3 percent in July from 7.9 percent in June, driven by lower food and non-food non-fuel inflation.
The central bank observed that the MPC met against a backdrop of continued global uncertainties, high but easing inflationary pressures, a weak global growth outlook, geopolitical tensions, and measures taken by authorities around the world in response to these developments.
Thugge revealed that the impact of the tightening of monetary policy in June to anchor inflationary expectations was still transmitting in the economy.
