Kenya's central bank retains benchmark rate at 9.5 pct amid falling inflation

  • World
  • Tuesday, 30 May 2023

NAIROBI, May 29 (Xinhua) -- The Central Bank of Kenya (CBK) on Monday retained its benchmark lending rate at 9.5 percent amid easing inflation.

CBK Governor Patrick Njoroge, who chaired the Monetary Policy Committee (MPC) meeting in Nairobi, Kenya's capital, said that overall inflation has been falling, mainly driven by lower food prices.

"Food inflation is expected to moderate in the coming months following the long rains and lower global food prices," Njoroge said in a statement.

The MPC noted that the impact of the further tightening of monetary policy in March to anchor inflationary expectations is still transmitting in the economy.

Njoroge said the tightening of monetary policy will be complemented by the recently announced government measures to allow duty-free imports of specific food items, particularly sugar, which are expected to moderate prices and ease domestic inflationary pressures.

The committee said it will closely monitor the impact of the policy measures as well as developments in the global and domestic economy.

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