The Central Bank of Kenya (CBK) kept the basic lending rate at 8.75 percent on Monday, citing declining inflation.
The Monetary Policy Committee (MPC), kept the benchmark rate, saying the impact of tightening monetary policy in November to rein in inflation is taking shape.
“The Committee noted that the impact of the further tightening of monetary policy in November 2022 to anchor inflationary pressures were still transitioning in the economy,” the CBK said.
The hold is likely to save consumers from additional increases in bank lending rates and to lower the government’s cost of local borrowing.
Inflation – a measure of the cost of living over the previous 12 months — fell to 9.1 percent in December from 9.5 percent the previous month, owing to decreased food costs.
