Kenya may raise rates to protect shilling, Treasury Secretary says

The central bank kept its benchmark rate unchanged at 10 percent last month after loosening policy by 150 basis points in 2016. PHOTO:COURTESY

Central Bank of Kenya will continue to intervene in the market and may tighten monetary policy to protect the shilling against excess volatility from the external environment, Treasury Secretary Henry Rotich said.

“We can take appropriate measures, including tightening of monetary policy and fiscal policy,” Rotich said. The “central bank has been intervening, and will continue with intervention whenever there are temporary demands which are not related to fundamentals.”