Kenya’s Central bank lowers lending rate

Kenya’s Central bank lowers lending rate

Central Bank of Kenya (CBK) Governor Patrick Njoroge attends a presss conference in Nairobi on October 2, 2019. (Photo by SIMON MAINA / AFP)

The Monetary Policy Committee of Kenya’s central bank has announced a lowering of the Central Bank Rate from 9.0 per cent to 8.50 per cent.

According to the country’s apex bank, it took the decision noting that inflation expectations remain within the target range and there is room for accommodative monetary policy to support economic activity. The bank also notes that the Kenyan economy is operating below its potential.

In October, inflation stood at 4.9 per cent compared to 3.8 per cent in September in spite of overall inflation expectations to remain within range owing to lower food and electricity prices.

Real Gross Domestic Product (GDP) grew by 5.6 per cent in the first half of the year and the economy remained strong despite a slowdown in agricultural production due to delayed and below-average rainfall.

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