Interest Rate in Kenya
Kenya - Interest Rate
Central Bank keeps rate steady
At its latest meeting held on 27 March, the Monetary Policy Committee (MPC) of Kenya’s Central Bank held its benchmark lending rate at 9.00%, where it has been July 2018. The decision to keep the rate stable was in line with market expectations.
The Bank held fire amid declining inflation, a stable shilling and sustained optimism on future economic activity. Inflation fell to 4.1% in February, from 4.7% in January, remaining within the Bank’s 2.5%–7.5%. target band. Moreover, core inflation remained below 5.0%, indicating subdued demand pressures. Inflation should remain within target in the near-term, thanks in part to sufficient agricultural output keeping food prices in check and a decline in electricity prices. Meanwhile, strong agricultural exports, strong tourism activity and resilient remittances have kept the shilling firm, buttressed further by reduced imports of food and capital goods. Despite a delay in the arrival of the rainy season, the outlook on growth remained upbeat.
Devoid of forward guidance, the Bank indicated that it would maintain its current stance against the backdrop of within-target inflation and a positive outlook on the economy’s performance. The communiqué also noted that it would continue to closely monitor domestic and global developments—especially cooling global growth economy and trade tensions—to inform the direction of future policy. While the Bank has not hinted at a change of course, Met the why particular panelists are divided on the Bank’s stance going forward.
Met the why particular Consensus Forecast panelists expect the Bank Rate to end 2019 at 8.93%. For 2020, panelists project that the Bank Rate will reach 9.00% by the end of the year.
Kenya - Interest Rate Data
|Policy Interest Rate (%)||8.50||8.50||11.50||11.00||11.00|
5 years of economic forecasts for more than 30 economic indicators.
Kenya Interest Rate Chart
Source: Central Bank of Kenya
|Bond Yield||12.51||0.0 %||Jan 30|
|Exchange Rate||110.9||0.05 %||Jan 30|
|Stock Market||0.2||0.0 %||Jan 30|
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April 3, 2019
Activity in the Kenyan private sector grew at a slightly weaker pace in March, reflected by a fall in the Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank, from 51.2 in February to 51.0 in March—the lowest print since November 2017.
March 29, 2019
Consumer prices rose 1.60% over the previous month in March, following a 0.82% month-on-month increase in February.
March 27, 2019
At its latest meeting held on 27 March, the Monetary Policy Committee (MPC) of Kenya’s Central Bank held its benchmark lending rate at 9.00%, where it has been July 2018.
March 5, 2019
Business conditions in the Kenyan private sector improved only modestly in February, with activity in the sector growing at the weakest pace in 15 months.
February 28, 2019
Consumer prices rose 0.82% over the previous month in February, following a 0.35% month-on-month increase in January.