CBK holds lending rate at 10.50 pct

Central Bank of Kenya  held its benchmark lending rate at 10.50 percent on Monday in order to anchor inflation expectations and maintain market stability according the  bank’s monetary policy committee.

“The Committee concluded that although demand pressures on inflation remain moderate, the effects of the recent increase in fuel tax were expected to exert temporary upward pressure on consumer prices. Nevertheless, overall inflation was expected to remain within the Government target range in the short term. The MPC therefore decided to retain the CBR at 10.5 percent in order to anchor inflation expectations, and to maintain market stability,” Dr. Patrick Njoroge, Chairman, Monetary Policy Committee in a statement.

The committee also reviewed the Kenya Banks’ Reference Rate and revised the KBRR to 8.90 percent from 9.87 percent, effective from July 25, 2016.  Read full statement .