Kenya Holds Key Rate Steady at 8.5%

Central Bank of Kenya decided on November 4th to leave the benchmark interest rate unchanged at 8.5 percent, as current policy stance had moderated inflationary pressures.

Indeed, Kenya’s annual inflation rate decelerated for the second straight month to 6.43 percent in October from 6.6 percent in September, as lower oil prices pushed food, electricity, gas and transport prices down. The central bank targets inflation at 5 percent.

Meanwhile, the exchange rate has been stable despite short-term pressures from external events.  

In the second quarter of 2014, the Kenyan economy advanced 5.8 percent year-on-year, following a 4.4 increase in the previous period, mainly due to a boost in construction, manufacturing and financial and insurance activities.

Kenya Holds Key Rate Steady at 8.5%

Carolina Cunha |
11/4/2014 6:26:29 PM