Shilling steady against dollar, seen in tight range

The shilling was steady against the dollar Thursday after the Central Bank of Kenya (CBK) left its key lending rate unchanged a day earlier, as the decision had been priced in, traders said.

CBK held interest rates at 18 per cent as excepted for a second straight month, but analysts forecast the bank would ease its tight monetary policy in coming months, underpinned by the stability of the currency and as inflation cools.

The shilling has gained 1.79 per cent against the dollar this year, as the central bank mopped up excess liquidity in the market and intervened to defend the local unit. Commercial banks quoted the shilling at Sh83.50/70 per dollar, unchanged from Wednesday’s close.

—Reuters