NAIROBI, Kenya, Nov 27 – Central Bank of Kenya has maintained its benchmark lending rate at 7.00 percent, the twelfth time in a row noting that the current accommodative monetary policy stance remains appropriate.
CBK’s Monetary Policy Committee through a statement on Wednesday said that inflation expectations remain anchored within the target range and that leading economic indicators showed continued robust performance.
“The MPC also noted the elevated global risks, and their potential impact on the domestic economy. The Committee concluded that the current accommodative monetary policy stance remains appropriate, and therefore decided to retain the Central Bank Rate (CBR) at 7.00 percent,” read MPC statement.
The regulator further projected that the 2022 growth will remain strong supported by the continued strong performance of the services sector, recovery in agriculture, and an improvement in global demand.
“The Committee noted the robust implementation of the FY2021/22 Government Budget, particularly the strong rebound in revenue performance to December 2021 reflecting the pickup of economic activity and improvement in the business environment,” CBK said.
Kenya’s GDP grew by 9.9 percent in the third quarter of 2021 compared to a contraction of 2.1 percent in the third quarter of 2020.
The Q3 growth was attributed to the recovery of the services sector particularly transport and storage, education, information and communication, wholesale and retail trade, and the improved performance of the manufacturing and construction sectors.
