Kenya Keeps Benchmark Lending Rate Unchanged in March

The CBK is expected to begin raising interest rates mid this year to avert prolonged price pressure due to de-anchored expectations.

Central Bank of Kenya Kisumu Branch I Khusoko

Central Bank of Kenya’s Monetary Policy Committee (MPC) on Tuesday left interest rates unchanged for the 13th consecutive time at 7.00 percent to support economic recovery.

“The Committee noted that inflation expectations remain anchored within the target range supported by the Government’s policy interventions, and leading economic indicators show improved performance. The MPC also noted the elevated global risks and their potential impact on the domestic economy,” Dr. Patrick Njoroge said.

The Tuesday meeting was being held against the backdrop of a changed global outlook with heightened geopolitical tensions, volatile commodity prices, the coronavirus pandemic, and measures taken by authorities around the world in response to these developments.

MPC said inflation is expected to remain within the target range in the near term due to muted demand pressures and policy interventions. However,  the Committee said the increased risk of inflation pressure remains due to global uncertainties.

It also expects the economy to remain resilient supported by the recovery in agriculture and continued strong performance of the services sector despite the downside risks to global growth in 2022.

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