On Tuesday, the Central Bank’s Monetary Policy Committee (MPC) retained its base lending rate at 7.50 per cent, saying international commodity prices, particularly oil, wheat, and edible oils, had begun to moderate.
The MPC action has subsequently been complemented by an additional package of fiscal measures by the government to moderate the prices of specific items.
“These developments are expected to ease domestic inflationary pressures in the near term. The MPC, therefore, decided to maintain the Central Bank Rate (CBR) at 7.50 per cent,” said CBK Governor Patrick Njoroge.
The MPC met against a weaker global outlook, with elevated global inflationary pressures, heightened geopolitical tensions, high commodity prices, the COVID-19 pandemic, and measures taken by authorities worldwide in response to these developments.