allAfrica.com allafrica.com 28 Jan, 2021 06:45 am

Kenya: CBK Retains Key Loans Rate, Sees Economy Recovering

The Central Bank of Kenya (CBK) on Wednesday retained the base lending rate at 7 per cent for the sixth time in a row shrugging off rising concerns over inflation.

Month-on-month overall inflation stood at 5." He, however, said the recently-introduced tax measures are expected to have "a modest impact on overall inflation.p The Central Bank of Kenya (CBK) on Wednesday retained the base lending rate at 7 per cent for the sixth time in a row shrugging off rising concerns over inflation."The MPC concluded that the current accommodative monetary policy stance remains appropriate, and therefore decided to retain the Central Bank Rate (CBR) at 7.

The Monetary Policy Committee said it held the key rate - effectively sparing borrowers higher cost of loans - in an environment where inflation expectations were within the target range and the economy was on the road to recovery following initial disruption brought about by the Covid-19 pandemic."The inflation rate is expected to remain within the target range in the near term, supported by lower food prices and muted demand pressures.

Read full story at allafrica.com