Kenya's central bank has decided to keep its benchmark interest rate unchanged at 10.50% for the second consecutive time this Tuesday, as it continues to manage inflation pressures. This move follows a previous rate increase from 9.50% in June, which was implemented in response to the rising cost of living.
The Monetary Policy Committee (MPC) anticipates further reductions in both overall and food inflation, despite a slight increase due to price hikes in certain vegetables. The committee continues to monitor the situation closely and plans to convene again in December, or earlier if necessary.
Meanwhile, fuel inflation remains high at 13.1%, reflecting global trends. Despite this, non-food non-fuel inflation has remained stable at 3.7%, a testament to the effectiveness of the monetary tightening measures implemented in June.
In September, the overall inflation rate was 6.8%, a slight increase from August's figure of 6.7%. However, the MPC remains confident that its current monetary policy stance is sufficient to manage these pressures.
This decision by Kenya's central bank aligns with its ongoing efforts to maintain price stability and support economic growth amidst global economic uncertainties.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.