Kenya’s central bank has kept its benchmark interest rate at 8.75 percent for a third consecutive meeting, saying the current policy stance remains appropriate as it weighs rising fuel costs, a stable shilling and stronger economic growth against the risk of renewed inflation from the Middle East conflict.
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The Central Bank of Kenya’s Monetary Policy Committee held the rate unchanged on Tuesday. The decision is aimed at keeping inflation expectations anchored while supporting stability in the foreign exchange market.
“[The current stance] remains appropriate to ensure that inflation expectations remain anchored within the target range, and the exchange rate remains stable,” Governor Kamau Thugge said in a statement.
Kenya’s annual inflation rate rose slightly to 6.5 percent in July from 6.4 percent in June, remaining within the central bank’s target range of 2.5 percent to 7.5 percent.
