Central Bank of Kenya holds lending rate, inflation within target

Kenya: Central Bank kept its key lending rate unchanged as expected at 8.50 per cent yesterday, saying overall inflation remained within the Government's target and continued to support macroeconomic stability.

The rate has remained unchanged since May 2013, and the decision by the bank's Monetary Policy Committee (MPC) was broadly expected by analysts. The Central Bank also said year-on-year inflation had risen slightly to 5.61 per cent in February from 5.53 per cent last month due to a rise in food prices and despite falling fuel prices.