Central Bank of Kenya sets interest rate date

The Central Bank of Kenya’s Monetary Policy Committee will hold its next rate-setting meeting on May 27, the bank said.

At its last meeting in March, the central bank held its benchmark lending rate at 9.0 percent, saying inflation expectations remain within the target range.

It was the fourth consecutive decision by the bank to keep rates on hold since September.

Year-on-year inflation was down to 4.14 percent in February from 4.7 percent a month earlier, staying within the government’s preferred band of 2.5-7.5 percent.

“The (Monetary Policy) Committee noted that inflation expectations remained well anchored within the target range and that the economy was operating close to its potential,” the bank said in a statement.

In January, the bank said the economy was expected to expand by 6.3 percent this year, up from an estimated 6.1 percent in 2018, driven by an expansion in agriculture and services.