Kenya’s central Bank maintains its benchmark rate at 13.5% despite steady inflation

NAIROBI (Xinhua), June 5 – The Central Bank of Kenya retained its benchmark lending rates at 13 percent on Wednesday, as inflation remained stable.

CBK Governor Kamau Thugge who presided over the Monetary Policy Committee meeting noted that previous measures had lowered inflation to the middle of the target range and stabilized exchange rates.

Thugge, Kenya’s president, said that “overall inflation” is expected to stay stable in the short term around the middle of the target range. This will be supported by a stable exchange rate, an improved food supply due to favorable weather, stable fuel prices and the effects of monetary policies which are still filtering through the economy.

He said that Kenya’s overall inflation rate remained largely unchanged in May at 5.1 per cent, compared with 5 percent in April. This is the middle of the target range.

The MPC stated that its meeting was held against the backdrop of a better global outlook for economic growth, a persistent inflation problem in advanced economies and persistent geopolitical tensions. It is ready to take any further actions as required in accordance with its mandate.

Related Articles