The Central Bank of Kenya unexpectedly cut its benchmark interest rate by 25 bps to 8.25% during its January meeting, after slashing it by 50 bps in November, citing a backdrop of well-anchored inflation and inflation expectations. Policymakers said that the economy was operating below its potential and there was room for a more accommodative stance provided by the ongoing tightening of fiscal policy, especially after the repeal of the interest rate cap law last November. The GDP is seen growing faster in 2020, mainly boosted by the recovery of the agricultural sector due to the recent interventions by the government, MSMEs performance, private sector credit growth, continued implementation of the Big 4 agenda and a stable macroeconomic environment. Still, domestic adverse weather conditions and global uncertainties remain the main risks to the outlook.
Interest Rate in Kenya averaged 13.66 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. source: Central Bank of Kenya
Interest Rate in Kenya is expected to be 8.25 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 8.00 in 12 months time. In the long-term, the Kenya Interest Rate is projected to trend around 7.50 percent in 2020, according to our econometric models.