The central bank of Kenya kept its benchmark interest rate unchanged at 7% during its September 2020 meeting, as widely expected, despite a still-challenging economic backdrop due to Covid-19. Policymakers said that the current accommodative monetary policy stance remains appropriate, as policy measures implemented since March were having the intended effect on the economy, which will be reinforced by the implementation of fiscal measures announced in the FY2020/21 government budget. Policymakers added that leading indicators for the Kenyan economy for the third quarter point to a strong recovery in economic activity, mainly supported by agriculture, increased activity in key sectors such as services with the easing of Covid-19 restrictions, normalisation of exports and government intervention to mitigate the impact of the pandemic. Meanwhile, the inflation rate remains well anchored and it is projected to remain within the target range of 2.5-7.5% in the near term.
Interest Rate in Kenya averaged 13.51 percent from 1991 until 2020, reaching an all time high of 84.67 percent in July of 1993 and a record low of 0.83 percent in September of 2003. This page provides the latest reported value for - Kenya Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Kenya Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020. source: Central Bank of Kenya
Interest Rate in Kenya is expected to be 7.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Kenya to stand at 6.75 in 12 months time. In the long-term, the Kenya Interest Rate is projected to trend around 6.50 percent in 2021 and 6.25 percent in 2022, according to our econometric models.