Central Bank of Kenya retains benchmark rate at 10pc

The Central Bank of Kenya (CBK) has retained the benchmark lending rate at 10 per cent despite a rise in the cost of living.

Through its Monitory Policy Committee (MPC), CBK Monday opted to hold the Central Bank Rate (CBR) at 10 per cent against the backdrop of improved weather conditions, expectations of lower food prices and general macro-economic stability.

“The Committee concluded that overall inflation is expected to remain above the Government target range in the near term due to elevated prices for some food items. Nevertheless, the prevailing policy stance has reduced the threat of demand-driven inflation,” said CBK Governor and MPC chairman Patrick Njoroge.

“The MPC therefore decided to retain the CBR at 10.0 per cent.”

 Inflation rose in April to 11.5 per cent, the highest since May 2012.