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.