The Monetary Policy Committee maintained the Central Bank lending rate at 9 per cent for the fifth consecutive time during their bi-monthly meeting on 27th May. The decision was influenced by the stable foreign exchange market, reasonable level of inflation, growth in the private sector credit, and strong economic growth in the first quarter of 2019.
The MPC highlighted that innovative credit solutions aimed at small and medium-sized enterprises such as the digital lending platforms had contributed to the steady economic expansion in the country.
The committee also noted the potential risk posed by rising fuel prices, below average rainfall, and the effects of the growing tension between the US and China. The global markets expect higher volatility in 2019, given the trade disagreements between the US and China, the uncertainty around Brexit, and changes in the monetary policy in the developed economies. The tension in international markets may negatively affect Kenya’s export business.
Members of the monetary committee said they would continue to monitor the global and domestic markets and take appropriate action.
