NAIROBI, Nov. 23 (Xinhua) -- The Central Bank of Kenya (CBK) on Wednesday raised its benchmark lending rate to 8.75 percent from 8.25 percent amid rising inflation.
Patrick Njoroge, CBK Governor, who chaired the Monetary Policy Committee (MPC) meeting noted that the current elevated global risks and their potential impact on the domestic economy provides scope for a further tightening of the monetary policy to anchor inflation expectations.
"The Committee will closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take additional measures, as necessary," Njoroge said in a statement released in Nairobi, Kenya's capital.
The MPC added that it also reviewed the outcomes of its earlier decisions and measures implemented to alleviate the adverse economic impact and financial disruptions.
The central bank also observed that the MPC meeting was held against a backdrop of continued global uncertainties, volatile financial markets, lingering effects of the COVID-19 pandemic, and measures taken by authorities around the world in response to these developments.
Njoroge said that the rising food and fuel prices were largely due to the reduced supply of local agricultural produce coupled with international supply chain disruptions for imported commodities.
