Central bank governor sees five percent inflation next year, beyond

Central Bank of Kenya governor said on Tuesday he expects inflation of around 5 percent in 2018 and going forward.

“Looking forward inflation is well anchored. There’s no reason for it to deviate from where it is,” Patrick Njoroge told reporters on the sidelines of a conference in Dubai.

He said it was inevitable that commercial lending rate caps will be removed, but timing of the move was uncertain.

Kenya capped commercial lending rates a year ago at 4 percentage points above the central bank rate, which stands at 10 percent, and also imposed a minimum deposit rate of 70 percent of the central bank rate.