Kenya - Riba

The Central Bank of Kenya left its benchmark interest rate at 9% during its September meeting, as widely expected, saying that inflation remained well anchored within the target range and that the economy was operating close to its potential. The Committee also noted that the projected tightening of fiscal policy will probably provide scope for accommodative monetary policy in the near term. Still, policymakers stressed that there is need to remain vigilant on the possible effects of the increased uncertainties in the external environment, namely the escalation of trade tensions between the US and China, other geo-political tensions which have resulted in volatile international markets, and shifting expectations on the nature and timing of Brexit.

The Central Bank of Kenya held its benchmark interest rate at 9 percent during its July meeting, saying that inflation expectations remained well anchored withing the target range and that the economy was operating close to its potential Still, policymakers voiced concerns about the possible effects of the recent increases in fuel prices, the ongoing demonetization and the ongoing uncertainties in the external environment, in particular escalating trade tensions, Brexit and geopolitical tensions.

The Central Bank of Kenya left its benchmark interest rate unchanged at 9% at its May 27th 2019 meeting, as widely expected. Policymakers said that the decision is appropriate and based on the backdrop of domestic stability, optimistic growth prospects, improving weather conditions in most parts of the country and increased uncertainties in the global financial markets. The bank noted the rise in headline inflation to a 19-month high of 6.58% in April from 4.35% in March, mainly driven by food cost as a result of the prolonged drought. The Committee added that inflation expectations remained well anchored within the target and that the economy was operating close to its potential, but will keep an eye on possible spillovers of recent food and fuel price increases.

The Central Bank of Kenya held its benchmark interest rate unchanged at 9 percent at its March 27th 2019 meeting reflecting domestic macroeconomic stability, sustained optimism on the economic growth prospects despite the delayed onset of the long rains in parts of the country, a gradual rise in international oil prices and the weakening of global growth. The MPC noted that inflation expectations remained well anchored within the target range, and that the economy was operating close to its potential. The Committee also pledged to closely monitor developments in the global and domestic economy, and stands ready to take additional measures as necessary.

The Central Bank of Kenya left its benchmark interest rate unchanged at 9.0 percent at its January 28th 2019 meeting, as widely expected. Policymakers said that the decision is appropriate and based on the backdrop of domestic macroeconomic stability, economic growth prospects, lower international oil prices, and increased uncertainties and weaker global growth outlook. The Committee noted that inflation expectations remained well anchored within the target range and that the economy was operating close to its potential. The bank also said that they will continue to monitor global and domestic economic developments and if necessary will take additional measures.