Kenya’s central bank on Monday left its benchmark interest rate at 10 percent, as expected, and confirmed that it will continue to closely monitor the market in light of inflation, the global economy, the exchange rate and the banking sector.
The Central Bank of Kenya (CBK), which has maintained the rate since its last cut in September, said that inflationary pressures were mild and inflation would remain within government target in the short term.
Kenya’s October inflation increased to 6.5% from 6.3% in September, largely due to changes in prices of food items.
The Bank also noted that the shilling was stable despite the volatility in the global markets as a result of US elections and increased demand for dollars from corporates to pay dividends to foreign investors. The Bank’s reserves fell by USD 378 Million to USD7.305 Billion from USD 7.683 Billion reported in October.
The Bank added that the banking sector was very stable and there was continued interest from foreign banks to enter the Kenyan market.
