CBK Leaves Interest Rates Unchanged, Says Economy Remains Robust

The Central Bank of Kenya’s monetary policy committee maintained key interest rates for the 12th time on Wednesday, retaining an accommodative stance amid an evolving global outlook.

The bank has maintained the rate since March 2020.

The Central Bank Rate (CBR)  and Cash Reserve Ratio (CRR) remain unchanged at 7.00 per cent and 4.25 per cent respectively.

Based on an assessment of the macroeconomic situation and outlook,  the MPC unanimously voted to maintain the status quo with regard to the policy rate. 

The MPC’s meeting reviewed the outcomes of its previous decisions, including measures implemented to mitigate the adverse economic effects and financial disruptions from the pandemic.

“The Committee concluded that the current accommodative monetary policy stance remains appropriate, and therefore decided to retain the Central Bank Rate (CBR) at 7.00 per cent,” Dr Patrick Njoroge said in a media brief. 

Inflation expectations remain anchored within the target range, and leading economic indicators showed continued robust performance.

The central bank maintained that the economy is expected to remain strong in 2022, supported by the continued strong performance of the services sector, recovery in agriculture, and an improvement in global demand.

“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 additional measures as necessary,” Njoroge said in a statement.