Central Bank warns Middle East conflict could reignite inflation

Central Bank of Kenya says inflation concerns increased in the week ending on March 5, mainly due to the escalation of the Middle East conflict. [Courtesy]

The banking regulator has warned that rising tensions in the Middle East could push inflation up again and make it harder to maintain stable prices ahead of the next interest rate decision.

The Central Bank of Kenya (CBK), in its weekly bulletin for the period that ended on March 5, pointed to soaring international oil prices and heightened geopolitical tensions as key risks to the domestic economy, just weeks before its Monetary Policy Committee (MPC) meet which is due in April.