The Central Bank of Kenya’s Monetary Policy Committee (MPC) on Monday retained the policy rate at 8.75 per cent to ensure inflation remains within the target while supporting growth.
“The (Monetary Policy) Committee noted that the impact of the further tightening of monetary policy in November 2022 to anchor inflationary pressures were still transitioning in the economy,” the CBK said in a statement.
“Additionally, the MPC noted that this action will be complemented by the recently announced government measures to allow limited duty-free imports on specific food items, which are expected to moderate prices and further ease domestic inflationary pressures.”
Overall inflation decreased to 9.1 per cent in December 2022 from 9.5 per cent in November, mainly due to lower food prices.
Food inflation declined to 13.8 per cent in December from 15.4 per cent in November, driven mainly by a decrease in prices of maize and milk products following improved supply attributed to the ongoing harvests and the impact of the recent short rains, respectively.
“Overall inflation is expected to decline in the near term…”
The committee will meet again in March, but remains ready to reconvene earlier if necessary, the bank said.
