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Kenya’s central bank maintains main lending rate at 8.75%

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Kenya’s central bank kept its benchmark lending rate at 8.75%

Kenya’s central bank kept its benchmark lending rate at 8.75% this Tuesday, the bank’s monetary policy committee said.

 

Economists ⁠polled by Reuters had predicted the bank would hold the rate for the second policy meeting in a row.

 

Inflation rose sharply in April and May, driven by fuel price hikes triggered by ‌the ⁠surge in global energy costs linked to the Iran war.

 

At 6.7% year on year last month inflation is ⁠approaching the top of the government’s preferred 2.5%-7.5% range.

 

The Central Bank of ⁠Kenya on Tuesday revised down its economic growth forecast for ⁠this year to 4.9% from a previous projection of 5.3%.

 

–Reuters–