Shilling steady after CBK rate cut

The shilling held steady Tuesday but off this month's highs, after the Central Bank of Kenya (CBK) cut its benchmark lending rate by a percentage point to 10.50 per cent on Monday, the first cut since hiking rates in August.

 In early trade Tuesday, commercial banks quoted the shilling at Sh100.95/05 to the dollar compared with Monday's close of Sh100.90/Sh101.00. After almost reaching Sh100 to the dollar in early May, its strongest level in about a year.

The shilling had slipped to touch near record lows of Sh105.20 against the US dollar in 2015 but has since gradually recovered. The CBK's Monetary Policy Committee (MPC) rate cut is informed by falling inflation that is now within the Government's target of five per cent.