Monetary Policy Committee retains Central Bank rate at 10 percent

July 17, 2017 (4 days ago)
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The meeting was held against a backdrop of declining food prices, sustained macroeconomic stability, and continued resilience of the economy. /FILE

, NAIROBI, Kenya, Jul 17 – The Central Bank Monetary Policy Committee has retained the benchmark Central Bank rate at 10 percent, leaving interest rates unchanged.

The Chairman of the Committee and Central Bank Governor Dr. Patrick Njoroge has said the committee considered inflation expectations but added that it will continue monitoring developments in the global and domestic economy.

Dr. Njoroge says a Private Sector Market Perception Survey conducted in July shows non-bank private sector firms expect a stronger growth largely due to macroeconomic stability and ongoing public infrastructure investments.

Banks, on the other hand, expect growth to remain unchanged on account of weaker private sector credit growth and concerns over the forthcoming elections.

“The economy remained resilient in the first quarter of 2017, recording a growth rate of 4.7 percent relative to the first quarter of 2016. This performance was supported by stable macroeconomic conditions, despite poor performance of the agriculture sector due to adverse weather conditions,” said Dr. Njoroge.

Strong performance was recorded in the transport, real estate, construction, mining and quarrying, tourism, and information and communication sectors. This is despite the impact of the slowdown in private sector
credit growth.

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